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:

Baby Boomers

The demographic cohort following World War II, generally defined as individuals born from 1946 to 1964, characterized by significant population increases and distinct cultural identities.

Ablism

Bias or unfair treatment directed at people who have disabilities.

Gerontocratic Model

A social or political system where leadership is concentrated in the hands of the elderly, valuing their wisdom and experience.

Age Cohort

A group of individuals who share a similar age, typically used for statistical analysis on common characteristics or experiences.