The Capital Budgeting Method That Calculates the Discount Rate at Which

question 12

Multiple Choice

The capital budgeting method that calculates the discount rate at which the present value of expected cash inflows from a project equals the present value of expected cash outflows is the ________.

• A) net present value method
• B) accrual accounting rate-of-return method
• C) payback method
• D) internal rate of return method