When the Internal Rate of Return Is the Same as the Required

question 16

True/False

When the internal rate of return is the same as the required rate of return,the net present value of an investment will be positive.

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Definitions:

Depreciation Expense

An accounting method used to allocate the cost of a tangible asset over its useful life.

Residual Value

The estimated value that an asset will have at the end of its useful life.

Estimated Life

The expected period over which an asset will be utilized or useful, often used for the purpose of depreciation or amortization calculations.

Depreciable Cost

The total cost of a fixed asset that can be depreciated over its useful life, excluding salvage value.