What Does the IRR Function Calculate

question 456

Multiple Choice

What does the IRR function calculate?

• A) The present value of an investment
• B) The payback period for an investment
• C) The interest rate for repayment of a loan
• D) The internal rate of return for an investment

---

Definitions:

Arbitrator Award

The final decision made by an arbitrator or arbitration panel in a dispute resolution process, which is binding and enforceable upon the parties involved.

Verdict

The decision made by a jury or judge in a legal case, concluding the trial and determining the outcome.

Judgment

A formal decision made by a court regarding the rights and liabilities of parties in a legal action or proceeding.

Diversity of Citizenship

A legal principle allowing federal courts to hear cases where the parties are citizens of different states or countries, aiming to prevent state court bias.