Which of the following best describes the internal rate of return?
A) The ratio of average annual income to average amount invested
B) The rate at which an investment pays back
C) The discount rate that makes the cost of the investment equal to the present value of the cash flows
D) The discount rate that is used to borrow funds from a lender
Correct Answer:
Verified
Q61: Which of the following is TRUE of
Q62: Which of the following is TRUE of
Q64: Cash flows used in NPV and IRR
Q65: Which of the following most accurately describes
Q68: Which of the following best describes the
Q69: An investment would be considered a good
Q70: Which of the following is the rate
Q71: The term net present value means the
Q116: Compound interest used in discounted cash flow
Q132: When a company is evaluating an investment
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents