Which of the Following Best Describes the Internal Rate of Return

question 29

Multiple Choice

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

• A) interest rate that makes the net present value of the investment equal to 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:

Self-Sustainability

The ability of a system, community, or individual to maintain and support itself without relying on external resources.

Nihilism

A philosophy that rejects generally accepted or fundamental aspects of human life, such as objective truth, morality, or meaning.

Moral Beliefs

Principles or values that govern an individual's understanding of right and wrong.

Purpose

The reason for which something is done or created or for which something exists.