The Internal Rate of Return for a Project Is the Discount

question 49

True/False

The internal rate of return for a project is the discount rate that makes the net present value of the project equal to zero.

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Definitions:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, showing how much the values differ from the mean.

Mean

The average of a set of numerical values, calculated as the sum of the values divided by the number of values.

Mean

The arithmetic average of a set of numbers, calculated by adding them together and dividing by the number of quantities.

Point Estimate

A single value estimate of a population parameter that serves as the best guess or prediction of the parameter.