Which of the Following Defines Internal Rate of Return (IRR)

question 57

Multiple Choice

Which of the following defines internal rate of return (IRR) ?

• A) IRR is the total variable cost incurred in a project.
• B) IRR is the maximum return achievable on investments.
• C) IRR is the difference between the present value of the cash inflows and outflows associated with a project.
• D) IRR is the interest rate that sets the present value of a project's cash inflows equal to the present value of a project's cost.

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Definitions:

Primary Research

Collection of original data through firsthand investigation, such as surveys, interviews, or experiments.

Experiments

Systematic procedures carried out to test hypotheses, observe effects, and study relationships between variables.

Secondary Research

The process of gathering existing data from previously conducted studies and analyses, which are available in books, articles, and online resources.

Ethnographic Research

A qualitative research method focusing on the systematic study of cultures and peoples through observation and participatory involvement.