The Internal Rate of Return for an Investment Project Is

question 27

Multiple Choice

The internal rate of return for an investment project is best defined as the:

• A)discount rate that causes the net present value to equal zero.
• B)difference between the market rate of interest and the discount rate.
• C)market rate of interest less the risk-free rate.
• D)minimum project acceptance rate set by management.
• E)maximum rate that can be earned for a project to be accepted.

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