The Internal Rate of Return Can Be Calculated by Solving

question 30

Multiple Choice

The internal rate of return can be calculated by solving for ki after setting net present value equal to:

• A) zero.
• B) the initial investment cost or outlay.
• C) the cost of capital.
• D) expected cash flows.

---

Definitions:

Cross-selling

The practice of selling additional products or services to existing customers to enhance their value to the company.

Bundling

The practice of selling multiple products or services together as a single combined package, often at a discount compared to purchasing each one separately.

Downselling

Downselling involves offering a lower-priced alternative to a product or service a customer is considering, aiming to make a sale when the original item is beyond the customer's budget.

Upselling

A sales technique where a seller invites the customer to purchase more expensive items, upgrades, or other add-ons in an attempt to make a more profitable sale.