The Discount Rate That Makes the Net Present Value of an Investment

question 37

Multiple Choice

The discount rate that makes the net present value of an investment exactly equal to zero is called the

• A)profitable rate of return.
• B)internal rate of return.
• C)average accounting return.
• D)profitability index.
• E)risk-free rate.

---

Definitions:

Collaborative Problem Solving

A method where two or more individuals or groups work together through idea sharing and open communication to achieve a mutual solution to a problem.

Functional Structure

An organizational design where the company is divided into departments based on special functions such as marketing, finance, and production.

Technical Knowledge

Specific expertise or skills related to a particular field or technology, necessary for performing tasks and solving problems within that domain.

Similar Skills

Abilities or competencies that are alike or nearly identical among individuals or within groups.