What Is an Attribute of the Internal Rate of Return

question 63

Multiple Choice

What is an attribute of the internal rate of return?

• A)It is the interest rate that makes the NPV of the investment equal to zero.
• B)It is the interest rate that makes the cost of the investment equal to the present value of the investment's net cash inflows.
• C)It is used in the capital rationing process.
• D)All of the above are attributes of the internal rate of return.

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Definitions:

Time Management

The process of organizing and planning how to divide your time between specific activities to increase effectiveness, efficiency, and productivity.

Prioritizing

The process of determining the most important tasks or goals and allocating time and resources accordingly.

Strategic Plans

Long-term goals and actions designed to achieve a company's vision and mission, enabling it to navigate towards future growth and success.

Action Directions

Strategic moves or steps taken towards the achievement of goals or objectives.