The Internal Rate of Return of a Project Is the Rate

question 54

Multiple Choice

The internal rate of return of a project is the rate of return that equates the present value of its net cash flows with its:

• A)outflow.
• B)working capital.
• C)initial cash outlay.
• D)required rate of return.

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Definitions:

Pepsi

A global brand of carbonated soft drinks produced and manufactured by PepsiCo.

Marginal Utility

The extra pleasure or advantage gained by using an additional unit of a product or service.

Total Utility

The total satisfaction or benefit received by consuming a product or service.

Budget Line

A graphical representation showing all possible combinations of two goods or services that a consumer can afford with their income, given the prices of the goods.