The compound annual return on a project is known as its:

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The compound annual return on a project is known as its Internal Rate of Return (IRR). Option A: NPV is the present value of future cash flows minus the initial investment. Option B: PI (Profitability Index) is the present value of future cash flows divided by the initial investment. Option C: Payback period is the time required for an investment to generate enough cash flows to recover its initial cost.

The Compound Annual Return on a Project Is Known as Its