The Internal Rate of Return of a Project Is the Discount

question 43

Multiple Choice

The internal rate of return of a project is the discount rate that:

• A) adds the cash outflow to the current period.
• B) reduces the cash outflow from the current period.
• C) maximizes the net present value of the investment.
• D) makes the net present value of the investment zero.

---

Definitions:

Evidence-based Management

A practice where managerial decisions and organizational practices are made based on the best available evidence from multiple sources.

Evidence-based Science

A methodological approach that emphasizes the use of empirical evidence and research in the formation of scientific knowledge and policy-making.

Social Science Research

The systematic investigation of societal and human behavior through quantitative and qualitative methods.

Managers

Individuals in an organization responsible for planning, directing, coordinating, and overseeing the work of others to achieve the organization's goals.