Which of the Following Best Describes the Internal Rate of Return

question 29

Multiple Choice

Which of the following best describes the internal rate of return?

• A) interest rate that makes the net present value of the investment equal to zero
• B) discount rate that is used to evaluate funds borrowed from a lender for profitability
• C) the ratio of average annual income to average amount invested
• D) the rate at which the profitability of an investment increases

---

Definitions:

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Token Economy

A behavioral modification system that uses tokens as a form of positive reinforcement for desirable behaviors, exchangeable for rewards.

Exchangeable Rewards

Benefits, privileges, or items that can be given in exchange for certain actions, behaviors, or achievements, often used in the context of motivational theories.

Cognitive Therapy

A type of psychotherapy that emphasizes the important role of thinking in how we feel and what we do, aiming to change negative patterns of thought to relieve symptoms of mental disorders such as depression and anxiety.