The Internal Rate of Return Is Computed by Finding the Discount

question 391

True/False

The internal rate of return is computed by finding the discount rate that equates the present value of a project's cash outflows with the present value of its cash inflows.

---

Definitions:

Predetermined

Something established or decided in advance, not subject to change or influence by subsequent events.

Actualization Tendency

The innate drive in humans towards growth, fulfillment of potential, and self-realization, often associated with the humanistic psychology of Carl Rogers.

Biological Instincts

Innate impulses or drives present in all individuals that guide behavior and ensure survival.

Conditional Positive Regard

Acceptance and love from others that is contingent upon one's behavior meeting certain conditions or expectations.