Which One of the Following Methods Assumes (Inherently, According to Some)

question 41

Multiple Choice

Which one of the following methods assumes (inherently, according to some) that all interim cash inflows generated by an investment earn a return equal to the internal rate of return (IRR) of the investment?

• A) Modified internal rate of return (MIRR).
• B) Payback.
• C) Net present value (NPV).
• D) Present value index (PI).
• E) Internal rate of return method (IRR).

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Definitions:

Decrease In Supply

A reduction in the total amount of a good or service that is available to consumers, often leading to higher prices.

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product demanded, leading to a balance in the market.

Demand Curve

A graphical representation of the relationship between the price of a good and the quantity demanded by consumers at various price levels.

Legal Interest Rates

The maximum rate of interest lenders can charge borrowers, as determined by law.