The Internal Rate of Return (IRR) Technique Assumes That Cash

question 68

Multiple Choice

The internal rate of return (IRR) technique assumes that cash flows are reinvested at the _____. 

• A)firm's expected rate of return
• B)project's internal rate of return (IRR)
• C)market rate of return
• D)risk-free rate of return
• E)firm's opportunity rate of return

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Definitions:

Selling and Administrative Expenses

Operating expenses related to selling products or services and managing the business, excluding production costs.

Direct Materials

Parts and raw materials of a product.

Variable Overhead

Costs that fluctuate with production levels, such as utilities or materials used in the manufacturing process.

Variable Costing

An accounting method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overheads - in product costs.