The Internal Rate of Return

question 13

Multiple Choice

The internal rate of return:

• A)Is also known as the investment of investor's yield
• B)Represents a return on investment expressed as a compound rate of interest
• C)Is calculated by setting the price of an investment equal to the stream of cash flows it generates and solve for the interest rate
• D)Can be defined by all of the above Present Value Factor for Reversion of $1

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