The Internal Rate of Return of an Investment Project Is

question 122

Multiple Choice

The internal rate of return of an investment project is the:

• A)discount rate that results in a zero net present value for the project.
• B)minimum acceptable rate of return.
• C)weighted average rate of return generated by internal funds.
• D)company's cost of capital.

---

Definitions:

Purely Competitive

A market structure characterized by an infinite number of buyers and sellers, products that are identical, and no control over the market price by individual firms.

Marginal Product

Represents the additional output that can be produced by adding one more unit of a specific input, keeping other inputs constant.

Productivity

A measure of the efficiency of production, often quantified as the ratio of outputs (goods and services) produced per input used (such as labor, materials, and capital).

Resource

An economic or productive factor required to accomplish an activity, often considered in terms of time, labor, capital, and materials.