The Internal Rate of Return May Be Defined As

question 90

Multiple Choice

The internal rate of return may be defined as:

• A)the discount rate that makes the NPV equal to zero.
• B)the difference between the market rate of interest and the NPV.
• C)the market rate of interest less the risk-free rate.
• D)the project acceptance rate set by management.
• E)None of the above.

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Definitions:

Selling Expenses

Costs associated with marketing and selling a company's products or services.

Net Income

Net income, also known as net profit, is the total earnings of a company after subtracting all expenses, taxes, and costs from total revenue.

Sales Tax

A tax imposed by a government on the sale of goods and services, typically a percentage of the retail price paid by the consumer.

Multiple-Step Income Statement

A multiple-step income statement is a detailed financial report that separates operating revenues and expenses from non-operating ones to calculate net income in several steps or segments.