An Internal Rate of Return (IRR) Is the Discount Rate

question 43

Multiple Choice

An internal rate of return (IRR) is the discount rate that

• A) represents the minimal rate required to create a positive net present value.
• B) is the minimal rate of return an investor will accept.
• C) provides an investor with their required return.
• D) produces a present value of future benefits equal to the market price of a stock.

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Definitions:

Activation Energy Barrier

The minimum energy required for the reactants to undergo a chemical reaction and form products.

Particle Collision

An event where two or more particles come into contact with enough energy to cause a reaction or exchange of properties.

Successful Collisions

Interactions between reactant particles that result in a chemical reaction, dependent on factors like orientation and energy.

Cooled

The process of lowering temperature or the state of being less warm.