The Internal Rate of Return Is the Interest Rate That

question 132

Multiple Choice

The internal rate of return is the interest rate that results in a

• A) positive NPV.
• B) negative NPV.
• C) zero NPV.
• D) positive or negative NPV.

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Definitions:

Accounting Equation

The foundation of double-entry bookkeeping, representing the relationship: Assets = Liabilities + Equity.

Debit-Credit Analysis

A fundamental accounting technique that balances debits and credits in financial transactions to maintain the equation of assets = liabilities + equity.

Credit Services

Financial services that provide customers with credit facilities to purchase goods or services, including loans, credit cards, and lines of credit.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any jurisdiction.