Question: Help Save & Exit Submit The internal rate of return is: Multiple Choice the discount rate that makes the net present value of a

Help
Save \& Exit
Submit
The internal rate of return is:
Multiple Choice
the discount rate that makes the net present value of a project equal to the initial cash outlay.
highly dependent upon the current interest rates offered in the marketplace.
equivalent to the discount rate that makes the net present value equal to one.
a better methodology than net present value when dealing with unconventional cash flows.
tedious to compute without the use of either a financial calculator or a computer.
Prev
10 of 24
Next
MacBook Air
Help Save \ & Exit Submit The internal rate of

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

The internal rate of return is: Multiple Choice the discount rate that makes the net present value of a project equal to the initial cash outlay. equivalent to the discount rate that makes the net...

Q:

The internal rate of return is: Multiple Choice the discount rate that makes the net present value of a project equal to the initial cash outlay. equivalent to the discount rate that makes the net...

Q:

44. You were recently hired by a firm as a project analyst. The owner of the fim is unfamiliar with financial analysis and wants to know only what the expected dollar return is per dollar spent on a...

Q:

A zero-coupon bond has a $1,000 maturity value and matures in five years. You want a 14% return. They are worth $1,925.40 $1,000. $519.40 $140. QUESTION 13 The Internal Rate of Return is the discount...

Q:

The internal rate of return is: The discount rate that makes the net present value of a project equal to the initial cash outlay. Equivalent to the discount rate that makes the net present value...

Q:

1. The most reliable capital budgeting technique that should be considered when comparing between mutually exclusive alternative investments is A. Internal Rate of Return Method B. Traditional...

Q:

Which of the below is NOT a weakness of the payback criterion for evaluating capital budgeting projects? Select one: O a. It doesn't discount future cash flows. b. It ignores cash flows that occur...

Q:

Question 4 1 A payback period that is more than the required period signals an accept decision. O True False Question 5 1 The payback calculation takes the time value of money into account. True O...

Q:

Question 9 (1 point) Saved Which of the following statements is FALSE about the IRR? None, as all of the statements are true. The IRR should be compared to other projects or a target discount rate...

Q:

Question 4 1 pts Why may a manager prefer to use IRR instead of NPV? If the manager wants to know the optimal payback period. If the manager wants to evaluate a project that has negative free...

Q:

In the problem shown in Figure P13.1, the views indicated by the balloons are to be changed to full section views taken along the centerline in the direction indicated by the arrows in the remaining...

Q:

Could your network administrator open these files after you encrypted them with AxCrypt? Why not?

Q:

You are given the following information for lightning power company assume the company's tax rate is 2 1 % debt 1 2 , 0 0 0 bonds with 4 . 6 % coupons outstanding $ 1 0 0 0 per value 2 5 years to...

Q:

A particle is moving in three dimensions and its position vector is given by; r(t) = (4, 4t + 2, 3t)i + (4, 5t - 2, 3)2 + (3, 3t + 3, 1t)k where r is in meters and t is in seconds. Determine the...