The Internal Rate of Return Factor Is Equal to the

question 111

Multiple Choice

The internal rate of return factor is equal to the

• A) capital investment divided by the net cash flows.
• B) present value of net cash flows divided by the capital investment.
• C) present value of net cash flows divided by the profitability index.
• D) capital investment divided by the present value of the net cash flows.

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Definitions:

Decimal Places

The number of digits to the right of the decimal point in a numerical value.

Divide

To perform division, which is one of the four basic operations in mathematics, separating something into equal parts or groups.

Monetary Products

Financial products and instruments that are used for saving, investing, or making transactions, such as currencies, stocks, bonds, and savings accounts.

Round Off

The process of adjusting numbers to their nearest value based on a specific unit of measure, simplifying calculations or representations.