The Internal Rate of Return Is

question 52

Multiple Choice

The internal rate of return is: 

• A) the discount rate that makes the net present value of a project equal to the initial cash outlay. 
• B) equivalent to the discount rate that makes the net present value equal to one. 
• C) tedious to compute without the use of either a financial calculator or a computer. 
• D) highly dependent upon the current interest rates offered in the marketplace. 
• E) a better methodology than net present value when dealing with unconventional cash flows. 

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Definitions:

Government Policy

A plan of action or a set of decisions made by a government to guide public actions in a specific field or achieve certain goals.

Price Range

The spread between the highest and lowest selling price of a good or service in a particular market over a given period.

Government Payment

Funds disbursed by the government to individuals, businesses, or other government bodies, often as part of a policy or program.

Market Implementation

involves putting into action a plan or strategy aimed at capturing a target market segment or achieving sales goals.