The internal rate of return (IRR) can best be described as: A. the discount rate at which a set of cash flows have a zero net present value B. the discount rate at which a set of cash flows have a positive net present value c. the rate which the business has to pay to raise finance for an investment D. the return required by the managers of the business

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 15MC: The IRR method assumes that cash flows are reinvested at _________. A. the internal rate of return...
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7. The internal rate of return (IRR) can best be
described as:
A. the discount rate at which a set of cash flows have a
zero net present value
B. the discount rate at which a set of cash flows have a
positive net present value
c. the rate which the business has to pay to raise finance
for an investment
the return required by the managers of the business
D.
Transcribed Image Text:7. The internal rate of return (IRR) can best be described as: A. the discount rate at which a set of cash flows have a zero net present value B. the discount rate at which a set of cash flows have a positive net present value c. the rate which the business has to pay to raise finance for an investment the return required by the managers of the business D.
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