The rate of return approach determines the interest rate at which the investment will break even.

Name: The rate of return approach determines the interest rate at which the investment will break even.
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The rate of return approach, often referred to as the internal rate of return (IRR), calculates the interest rate at which the net present value (NPV) of an investment is zero, meaning the investment breaks even.

The Rate of Return Approach Determines the Interest Rate at Which