Which of the Following Are True About the Internal Rate

question 8

Multiple Choice

Which of the following are true about the internal rate of return method?

• A)The internal rate of return method measures future cash flows that are discounted at a rate that makes the net present value of the project equal or zero
• B)The internal rate of return represents the interest yield promised by a project over its useful life
• C)The internal rate of return is similar to the net present value method when future cash flows are discounted
• D)All of these choices

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Definitions:

Retailer-sponsored Cooperatives

Organizations owned and operated by a group of retailers aimed at improving purchasing power and marketing capabilities through collective efforts.

Franchising

A business model that allows an individual or group to operate a business using the branding and business structure of an established company.

Contractual Vertical Marketing System

A system in which independent firms at different levels of the distribution chain work together through contractual agreements to achieve greater economies of scale and reach a greater market effectiveness than they could achieve alone.

Horizontal Marketing System

A collaboration strategy where companies at the same level of the value chain join forces to exploit a marketing opportunity.