The Internal Rate of Return Factor Is Also the

question 21

Multiple Choice

The internal rate of return factor is also the

• A) annual rate of return.
• B) profitability index.
• C) cash payback period.
• D) present value factor for a single amount.

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Definitions:

Straight-line

A method of depreciation that allocates an equal expense rate to each year of an asset’s useful life.

Accelerated Methods

Depreciation methods that allocate more depreciation expense to the earlier years of an asset's life.

Depreciation

Strategically spreading out the cost of a tangible asset throughout its period of usefulness.

Accounting Estimate

An approximation of a financial transaction's value when precise measurement is not possible, often used in accrual accounting.