Which One of the Following Will Occur When the Internal

question 77

Multiple Choice

Which one of the following will occur when the internal rate of return equals the required return?

• A)The average accounting return will equal 1.0.
• B)The profitability index will equal 1.0.
• C)The profitability index will equal 0.
• D)The net present value will equal the initial cash outflow.
• E)The profitability index will equal the average accounting return.

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Definitions:

1 Year

A period of 365 days (366 in a leap year), used as a standard unit of time to measure durations and ages.

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A memory disorder characterized by sudden retrograde episodic memory loss, said to occur for a period of time ranging from hours to years due to psychological stress.

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A condition in which there is an imbalance in the levels of neurotransmitters in the brain, often linked to various mental health disorders.