What Is the Internal Rate of Return

question 28

Multiple Choice

What is the internal rate of return?

• A)The discount rate that makes the cash inflows equal to the cash outflows.
• B)The discount rate that the firm uses to calculate the profit margin.
• C)The discount rate after adjusting for inflation.
• D)The difference between nominal and real returns.
• E)None of the above.

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Definitions:

Reciprocal Concessions

A negotiation strategy where each party makes compromises to reach an agreement, often strengthening the relationship through mutual sacrifice.

That's-not-all Technique

A sales strategy where additional items or discounts are offered to make a deal look more appealing without giving the buyer time to refuse the initial offer.

Disrupt-then-reframe Technique

A persuasion strategy that involves presenting an unexpected element (disruption) followed by a rational argument (reframe) to persuade someone.

Critical Thinking

The objective analysis and evaluation of an issue in order to form a judgment.