The Internal Rate of Return of a Project Can Be

question 32

Multiple Choice

The internal rate of return of a project can be found by

• A)discounting all cash flows at the cost of capital.
• B)averaging all cash inflows,and calculating the interest rate,which will make them equal to the average investment.
• C)calculating the interest rate,which will equate the present value of all cash inflows to the present value of all cash outflows.
• D)None of the above

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