The _________ is the discount rate that equates the present value of a project's benefits and costs. The ______ is a rate-of-return measurement directly comparable to the market's interest rate (r) cost of capital.
A) the stochastic Regession Beta-value
B) Internal Rate of Return (IRR) ρ-value
C) Federal Funds Rate
D) Fed's overnight money-market lending interest rate
E) the 30-year mortgage interest rate

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) ρ-valueis the discount rate that equates the present value of a project's benefits and costs. The Internal Rate of Return (IRR) ρ-value is a rate-of-return measurement directly comparable to the market's interest rate (r) cost of capital.

The _________ Is the Discount Rate That Equates the Present