What Term Is Used for the Discount Rate Which, When

question 44

Multiple Choice

What term is used for the discount rate which, when applied to the cash flows of a project, results in a zero net present value?

• A) Internal rate of return
• B) Absolute rate of return
• C) Multiple internal rate
• D) Net future value

---

Definitions:

Independent Variable

The variable that is manipulated in an experiment to see its effect on a dependent variable.

Interactions

In research, refers to the way that different factors or variables influence each other, often changing the outcome or effects when combined.

Internal Validity

The extent to which a study can prove that a cause-and-effect relationship exists between the tested variables, excluding the influence of external factors.

Nonmonotonic Relationship

A relationship between two variables where the direction of the effect changes over the range of the variable, meaning it can increase then decrease, or vice-versa.