The Internal Rate of Return Is

question 74

Multiple Choice

The internal rate of return is

• A) the discount rate that makes the NPV greater than zero.
• B) the discount rate that makes the NPV equal to zero.
• C) the discount rate that makes the NPV less than zero.
• D) Both a and c are correct.

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Definitions:

APC

Average Propensity to Consume, which is the fraction of income that is spent on consumption rather than savings.

Last 20 Years

Refers to the most recent two decades, a common time frame for analyzing changes and trends in economic, social, or technological domains.

Disposable Income

Net income available to households after taxes and other deductions, used for spending or saving.

GDP

GDP represents the sum total of all monetary values of goods and services produced inside a nation's boundaries over a given time frame.