The Internal Rate of Return Is Defined as

question 26

Multiple Choice

The internal rate of return is defined as

• A) a blend of the costs of capital from all sources.
• B) the minimal acceptable interest rate on investments.
• C) the difference between the present value of the cash inflows and outflows associated with a project.
• D) the interest rate that sets the present value of a project's cash inflows equal to the present value of a project's cost.

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Definitions:

Multinational Enterprise

A company that owns or controls production or service facilities in one or more countries other than its home country.

National Borders

The defined lines that distinguish the geographic boundaries of sovereign nations.

Force Majeure Clause

A contractual provision that relieves the parties from fulfilling their obligations when certain circumstances beyond their control occur, making performance inadvisable, commercially impracticable, illegal, or impossible.

Unforeseeable Occurrence

An event that cannot be predicted and is beyond the control of the parties involved, oftentimes relieving them from contractual obligations due to impossibility.