Which of the Following Best Describes the Internal Rate of Return

question 61

Multiple Choice

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

• A)discount rate at which the net present value the investment is zero
• 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

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Definitions:

Receiving

Refers to the process of accepting goods, documents, or other items.

Stockout

A situation in which a company does not have enough inventory available to fill an order.

Inventory Available

Refers to the products or goods a company has in stock and is ready to sell or distribute to customers.

Obsolete Inventory

Stock that is no longer sellable due to being out of date, out of fashion, or superseded by newer products.