The Internal Rate of Return Is Defined as The

question 269

Multiple Choice

The internal rate of return is defined as the:

• A) Average annual rate of return on a project.
• B) Average annual rate of return divided by the average book value of a project's fixed assets.
• C) Rate of return which yields a net present value equal to the initial investment in a project.
• D) Rate of return which causes the net present value of a project to equal zero.
• E) Rate of return which a cost-cutting, non-revenue generating project returns in an average year.

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Definitions:

Rate Of Return

The rate of return is a percentage that shows the amount of return an investment gives back to an investor compared to its cost.

Retirement Date

The specific date on which an individual decides to leave the workforce permanently, ceasing employment and often beginning to withdraw from retirement savings.

Increase Each Deposit

A strategy or action where the amount of money deposited in a savings, investment, or other financial account is progressively increased over time.

University Education

The level of education focusing on specialized study provided by universities and other higher education institutions, typically leading to a degree.