Which One of the Following Is the Estimated Rate (I

question 24

Multiple Choice

Which one of the following is the estimated rate (i.e., percentage) that makes the discounted present value of future after-tax cash inflows of a project equal to the initial investment outlay for the project?

• A) Weighted-average cost of capital (WACC).
• B) Payback period, in years.
• C) Book (accounting) rate of return.
• D) Internal rate of return (IRR).
• E) Accounting rate of return (ARR), after tax.

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