The Internal Rate of Return Method Is, Like the NPV

question 128

True/False

The internal rate of return method is, like the NPV method, a discounted cash flow technique.

---

Definitions:

Noncash Assets

Assets owned by a business or individual that are not in the form of cash or cash equivalents, such as buildings, machinery, or intellectual property.

Net Income and Losses

The total amount of money a company has earned (net income) or lost (net losses) during a specific period.

Liquidation

The process of ending a business and distributing its assets to claimants, typically occurring when a company becomes insolvent.

Investment

Investment refers to the allocation of resources, such as time, money, or effort, in something with the expectation of generating income or profit.