A Project's IRR Is the Interest Rate That

question 70

Multiple Choice

A project's IRR is the interest rate that

• A) causes the project's NPV to equal zero.
• B) is used to discount cash flows when computing the project's NPV.
• C) is used to determine which one of two mutually exclusive projects should be accepted.
• D) is used to compute the project's discounted payback period.

---

Definitions:

Defense Expenditure

financial spending dedicated to military forces and activities including personnel, operations, and maintenance, arms, and equipment procurement.

Federal Environmental

Federal Environmental pertains to the environmental policies, regulations, and efforts enacted and enforced by a nation's federal government to preserve natural resources and protect the environment.

Supreme Court

The highest judicial court in a country or state, which in the United States is the final arbiter of constitutional and federal legal issues.

Sandra Day O'Connor

The first woman appointed to the U.S. Supreme Court, serving from 1981 to 2006.