Which Statement Concerning the Internal Rate of Return Method of Capital

question 3

Multiple Choice

Which statement concerning the internal rate of return method of capital budgeting is true?

• A) The interest rate that will discount future cash flows so that their present value is exactly equal to the cost of the investment is the cost of capital.
• B) When the internal rate of return method is employed a direct relationship will exist between the interest rate chosen and the present value of future cash flows.
• C) When the net present value is equal to zero, the cost of capital (discount rate) and the internal rate of return are equal.
• D) The internal rate of return is the discount rate that will produce a positive net present value for the investment.

---

Definitions:

Early-Onset Schizophrenia

Is schizophrenia that appears before the age of 18, characterized by similar symptoms to adult-onset schizophrenia but can significantly impact development.

Neonates

Newborn infants, especially during the first few weeks after birth.

Uterine Contractions

Are the tightening and relaxing of the uterine muscles, often experienced during childbirth or menstruation.

Efface

To thin.