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

---

Definitions:

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort due to holding contradictory beliefs or values, leading to an alteration in one of the conflicting elements to reduce the dissonance.

Minimize

To reduce something to the least possible amount or degree.

Dissonance

A state of conflict or inconsistency between a person's beliefs, attitudes, or actions, often leading to discomfort and change.

Cognitive Dissonance

A psychological phenomenon in which an individual experiences discomfort or distress from holding two or more contradictory beliefs, ideas, or values at the same time.