Which is a common cost-effectiveness analysis method?
A)Consolidated rate of return
B)External rate of return
C)Corporate rate of return
D)Internal rate of return

Question

Quizplus · Accepted Answer

Internal rate of return (IRR) is a common cost-effectiveness analysis method that measures the profitability of an investment. It calculates the discount rate at which the present value of the cash inflows equals the initial cost of the investment. This method is widely used in evaluating the profitability of projects or investments for decision-making purposes. A, B, and C are not the correct choices as they are not typically used in cost-effectiveness analysis.

Which Is a Common Cost-Effectiveness Analysis Method