Unlike the Net Present Value Criteria, the Internal Rate of Return

question 37

Multiple Choice

Unlike the net present value criteria, the internal rate of return approach assumes an interest rate equal to

• A) the relevant cost of capital.
• B) the project's internal rate of return.
• C) the project's opportunity cost.
• D) the market's interest rate.

---

Definitions:

Wage Rate

An alternative expression for the compensation paid to an employee per unit of time worked, typically measured on an hourly basis.

Employment

The state of having paid work or the act of providing jobs for workers, contributing to an economy's labor force.

Temporary Assistance for Needy Families

A government aid program in the U.S. aimed at aiding low-income families to reach financial independence through monetary support and assistance services.

TANF

Temporary Assistance for Needy Families, a government program that provides financial aid to eligible low-income families.