The ____ Method Calculates the Rate at Which Discounted Cash

question 48

Multiple Choice

The ____ method calculates the rate at which discounted cash flows in and out are equal.

• A) IRR
• B) NPV
• C) both a and b
• D) neither a nor b

---

Definitions:

SSE

Sum of Squared Errors, a measure used in statistical analysis to quantify the discrepancy between the data and an estimation model.

SST

Total sum of squares in statistical analysis, measuring the total variation in the observed data.

Least Squares Estimate

A method in statistics for estimating the best-fitting line through a set of points by minimizing the sum of the squares of the differences between observed and estimated values.

Y-intercept

The point where a line crosses the Y-axis of a graph, representing the value of the dependent variable when all independent variables are set to zero.