The Internal Rate of Return Is

question 328

Multiple Choice

The internal rate of return is:

• A) More reliable as a decision making tool than net present value whenever you are considering mutually exclusive projects.
• B) Equivalent to the discount rate that makes the net present value equal to one.
• C) Difficult to compute without the use of either a financial calculator or a computer.
• D) Dependent upon the interest rates offered in the marketplace.
• E) A better methodology than net present value when dealing with unconventional cash flows.

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Definitions:

Consumer Purchases

Transactions made by individuals or households for goods and services for personal use.

Fair Debt Collection Practices Act

A U.S. federal law designed to eliminate abusive, deceptive, and unfair debt collection practices, providing guidelines for the conduct of debt collectors towards debtors.

Consumer Debt

Personal debt incurred by an individual primarily for the purchase of consumer goods that are consumable and/or do not appreciate.

Debt Collectors

Individuals or companies engaged in recovering owed money on behalf of themselves or others.