An Internal Rate of Return (IRR) Is the Discount Rate

question 43

Multiple Choice

An internal rate of return (IRR) is the discount rate that

• A) represents the minimal rate required to create a positive net present value.
• B) is the minimal rate of return an investor will accept.
• C) provides an investor with their required return.
• D) produces a present value of future benefits equal to the market price of a stock.

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Definitions:

Cognition

The mental processes that are involved in acquiring, storing, retrieving, and using information and that include sensation, perception, imagery, concept formation, reasoning, decision making, problem solving, and language.

Foot-In-The-Door Technique

A persuasive strategy where a smaller request is made first to increase the likelihood of agreement to a larger request later.

Attitude

A predisposition in one's mindset to appraise an entity positively or negatively, indicating favoritism or antipathy.

Behavior

Behavior refers to the actions or reactions of an organism, usually in relation to its environment, which can be observable or measurable.