Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A)The internal rate of return is the discount rate that results in a zero net present value for the project.
• B)The internal rate of return represents the rate of interest that results from the recovery of the investment outlay,plus a return on the investment project during its life.
• C)The internal rate of return represents the rate of interest that recovers the initial investment outlay.
• D)The internal rate of return is the discount rate that results in a zero net present value for the project.It also represents the rate of interest that results from the recovery of the investment outlay,plus a return on the investment project during its life.

Understand the concept and calculation of compound interest.

Calculate the rate of total return on an investment property.

Understand the impact of percentage increases and decreases on investment value.

Calculate the income yield from a rental property investment.

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Definitions:

Principal

The party that an agent’s authority can bind or act on behalf of.

Agent

An individual authorized to act on behalf of another, known as the principal, in legal or business matters.

Classical Islamic Law

The body of law derived from the Qur'an and the Hadith, governing aspects of personal conduct, family relations, and societal obligations in Islamic tradition.

Respondeat Superior

Respondeat Superior is a legal doctrine that holds an employer or principal responsible for the actions of their employees or agents, when those actions occur within the scope of employment or agency.