The Internal Rate of Return on an Asset Can Be

question 15

Multiple Choice

The internal rate of return on an asset can be calculated:

• A)if the return is greater than the hurdle rate.
• B)if the asset's cash flows are identical to the future value of a series of cash flows.
• C)if the future value of a series of cash flows can be arrived at by the annuity accumulation factor.
• D)by finding a discount rate that yields a zero net present value.
• E)by finding a discount rate that yields a positive net present valuE.