Which one of the following is the estimated rate (i.e., percentage) that makes the discounted present value
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Question:
Which one of the following is the estimated rate (i.e., percentage) that makes the discounted present value of future after-tax cash inflows of a project equal to the initial investment outlay for the project?
A) Weighted-average cost of capital (WACC).
B) Payback period, in years.
C) Book (accounting) rate of return.
D) Internal rate of return (IRR).
E) Accounting rate of return (ARR), after tax.
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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