The Rate of Return That Results in a Zero Net

question 42

Multiple Choice

The rate of return that results in a zero net present value for a project is called the:

• A) Discount rate of return
• B) Average rate of return
• C) Internal rate of return
• D) Required rate of return

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Definitions:

Insurance Benefit

A payment or service provided by an insurance company to the policyholder or a designated recipient under the terms of an insurance policy.

Lump Payment

Lump Payment is a single payment made at a particular time, in contrast to multiple payments made over time.

Compounded Monthly

Monthly calculation of interest that factors in the original principal and also the accumulated interest from the past periods.

Month-End Payments

Regular payments made at the end of each month, often related to financial transactions such as loan repayments or rent.