Which of the Following Best Describes the Internal Rate-Of-Return (IRR)

question 80

Multiple Choice

Which of the following best describes the internal rate-of-return (IRR) method?

• A) it calculates the discount rate at which an investment's present value of the total of all expected cash inflows equals the present value of its expected cash outflows.
• B) it calculates the discount rate at which an investment's future value of all expected cash inflows equals the present value of its expected cash outflows.
• C) it calculates the discount rate at which an investment's total of all expected cash inflows equals the present value of its expected cash outflows.
• D) it calculates the discount rate at which sum of an investment's present value of all expected cash inflows equals the present value of its expected cash outflows.

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Definitions:

K-Complex

A waveform pattern observed in EEG signals, characteristically seen during stage 2 of NREM sleep.

Amplitude

The maximum extent of a vibration or oscillation, measured from the position of equilibrium.

EEG

Electroencephalography, a non-invasive method to record electrical activity of the brain through electrodes placed on the scalp.

Rapid Eye Movement

A phase of sleep characterized by quick, random movements of the eyes, increased brain activity, and vivid dreams.