The Internal Rate of Return Is

question 52

Multiple Choice

The internal rate of return is: 

• A) the discount rate that makes the net present value of a project equal to the initial cash outlay. 
• B) equivalent to the discount rate that makes the net present value equal to one. 
• C) tedious to compute without the use of either a financial calculator or a computer. 
• D) highly dependent upon the current interest rates offered in the marketplace. 
• E) a better methodology than net present value when dealing with unconventional cash flows. 

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