Which Term Below Is Best Described as the "Rate of Return

question 143

Multiple Choice

Which term below is best described as the "rate of return that makes the NPV of a capital project equal to zero"?

• A) Accounting rate of return
• B) Discount rate
• C) Internal rate of return
• D) Net present value

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Definitions:

Period Costs

Expenses that are not directly tied to the production process and therefore are expensed in the period in which they incur, such as selling, general, and administrative expenses.