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

question 28

Multiple Choice

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

• A)profitable rate of return.
• B)internal rate of return.
• C)average accounting return.
• D)profitability index.
• E)risk-free rate.

---

Definitions:

Business Communication

The sharing of information between people within and outside an organization to achieve business goals and ensure effective operations.

Mobile Connectivity

The ability of devices to connect to the internet or other networks wirelessly, especially through mobile telecommunications.

Decision-Making Process

A series of steps or stages that lead to making a choice or finding a solution among several alternatives.

Social Media

Platforms where users create, share, or exchange information and ideas in virtual communities and networks.