The Discount Rate That Makes the Net Present Value of an Investment

question 69

Multiple Choice

The discount rate that makes the net present value of an investment exactly equal to zero is called the:

• A)external rate of return.
• B)internal rate of return.
• C)average accounting return.
• D)profitability index.
• E)equalizer.

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Definitions:

Lymph Vessels

The network of thin tubes that transport lymph fluid throughout the body, playing a crucial role in the immune system.

Dermis

The layer of skin beneath the epidermis, containing nerve endings, sweat glands, and blood vessels.

Melanin

A natural pigment found in most organisms, responsible for the color of skin, hair, and eyes, and protection against UV radiation.

Albinism

A genetic condition marked by the absence of melanin pigment in the skin, hair, and eyes, leading to light pigmentation and vision problems.