With the Internal Rate of Return Method,the Required Rate of Return

question 41

Multiple Choice

With the internal rate of return method,the required rate of return of an entity is normally

• A)cost of capital.
• B)government bond rate.
• C)20%.
• D)borrowing rate.

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Definitions:

Initial Public Offerings

The process where a private company offers shares of stock to the public for the first time.

Investment

The allocation of resources, usually financial, in expectation of future returns.

Inventory

The total amount of goods and materials held by a business, intended for sale or used in production.

Inventory Investment

The purchase of goods and materials for future sale or use, regarded as a form of investment by a company.