The Internal Rate of Return Is Defined as

question 26

Multiple Choice

The internal rate of return is defined as

• A) a blend of the costs of capital from all sources.
• B) the minimal acceptable interest rate on investments.
• C) the difference between the present value of the cash inflows and outflows associated with a project.
• D) the interest rate that sets the present value of a project's cash inflows equal to the present value of a project's cost.

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Definitions:

Logarithms

The power to which a base, usually 10 or e, needs to be elevated to result in a specific number.

Condense

To condense means to make something denser or more concentrated by reducing its volume or content without losing essential elements.

Properties

Characteristics or attributes that define an object, concept, or phenomenon in mathematics, science, or other fields.

Logarithms

The exponent or power to which a base number must be raised to produce a given number, fundamentally related to exponential functions.