Without Using Formulas, Provide a Definition of Internal Rate of Return

question 263

Multiple Choice

Without using formulas, provide a definition of internal rate of return (IRR) .

• A) The rate of return provided by a project. The value is compared with a company's rate of return to determine viability of a project.
• B) A situation whereby a choice has to be made between two or more projects, and choosing multiple projects is not an option.
• C) A graphical representation of the relationship between varying rates of return and the corresponding NPV value.
• D) A project analysis tool that measures the acceptability of a project through the difference between a project's initial investment and whether the present value of its cash flow will repay the investment.
• E) A project analysis tool that measures the acceptability of a project by determining the amount of profit that can be expected based on an investment made.

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Definitions:

Language Acquisition

The process by which humans acquire the ability to perceive, comprehend, and produce language through both innate mechanisms and learned elements.

Innate Capacity

A natural ability or talent that an individual is born with, not acquired through learning.

Relativist

A philosophical stance asserting that points of view have no absolute truth or validity, having only relative, subjective value according to differences in perception and consideration.

Phonemes

The tiniest sound elements in a language that can differentiate one word from another.