Which of the Following Best Describes the Internal Rate of Return

question 109

Multiple Choice

Which of the following best describes the internal rate of return?

• A)discount rate at which the cost of the investment equals the present value of the net cash inflows from the investment
• B)discount rate that is used to evaluate funds borrowed from a lender for profitability
• C)the ratio of average annual income to average amount invested
• D)the rate at which the profitability of an investment increases

---

Definitions:

Improve Communication

The process of enhancing the effectiveness and clarity of exchanging information between individuals or groups.

Be Understanding

The ability or effort to be empathetic and compassionate, making an attempt to see things from another's perspective.

Be Flexible

Indicates the capacity to adapt to changes and challenges effectively.

Be Tolerant

Refers to showing willingness to allow the existence of opinions or behaviors that one may not necessarily agree with.