What Is an Attribute of the Internal Rate of Return

question 63

Multiple Choice

What is an attribute of the internal rate of return?

• A)It is the interest rate that makes the NPV of the investment equal to zero.
• B)It is the interest rate that makes the cost of the investment equal to the present value of the investment's net cash inflows.
• C)It is used in the capital rationing process.
• D)All of the above are attributes of the internal rate of return.

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Definitions:

Measure

A method or tool used to quantify, assess, or track progress or performance in various fields.

Interactional Unfairness

The perception of being treated without respect or dignity by others, particularly in decisions affecting one's career or job.

Dissatisfied

Feeling of unhappiness or disappointment resulting from unmet expectations or needs in personal, professional, or social contexts.

Work Rewards

Compensation, benefits, recognition, and other incentives provided by an employer to motivate employees and acknowledge their contributions.