The Quickest Way to Calculate the Internal Rate of Return

question 72

Multiple Choice

The quickest way to calculate the internal rate of return (IRR) of a project is by

• A)trial and error method.
• B)using the graphical method.
• C)using a financial calculator.
• D)doubling the opportunity cost of capital.

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Definitions:

Energy Resource

Natural resources or man-made systems utilized to produce energy in the form of electricity or fuel.

Fold

A bend in layers of rock, often the result of compression forces and indicative of the rock layers' plasticity under such stress.

Salt Dome

A geological formation resulting from layers of salt that have been thrust upwards through overlying sediment, often forming a dome-like structure.

Fault Zone

A region of numerous, closely spaced faults, which can exhibit complex seismic and geologic activity due to the fracturing of the Earth's crust.