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Which of the Following Best Describes the Internal Rate of Return

Question 151

Multiple Choice

Which of the following best describes the internal rate of return?


A) The discount rate that makes the cost of the investment equal to the present value of the cash flows
B) The discount rate that is used to borrow funds from a lender
C) The ratio of average annual income to average amount invested
D) The rate at which an investment pays back

Correct Answer:

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