Which of the following is the rate of return, based on discounted cash flows, that a company can expect to earn by investing in a capital asset?

Question

Quizplus · Accepted Answer

The rate of return based on discounted cash flows is the Internal rate of return (IRR). The other options, Net present value (NPV) and Payback period, are both methods for evaluating investments, but they do not directly calculate the rate of return.

Which of the Following Is the Rate of Return, Based