Which One of the Following Statements About IRR Is NOT

question 58

Multiple Choice

Which one of the following statements about IRR is NOT true?

• A) The IRR is the discount rate that makes the NPV greater than zero.
• B) The IRR is a discounted cash flow method.
• C) The IRR is an expected rate of return.
• D) None of the above.

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Definitions:

Labour

The measure of human work or effort used in the production of goods and services.

Materials

Refers to the tangible components used in the production of goods and services, often categorized as direct or indirect materials depending on their direct allocation to a cost object.

Mark-Up Percentage

An added percentage to the buying price of products intended to cover both operational costs and earnings.

Total Variable Cost

The total of all costs that vary directly with the level of output, such as materials and labor costs that increase as more units are produced.