Question
9.The internal rate of return is defined as the: A. maximum rate of return a firm expects to earn on a project. B. rate of
9.The internal rate of return is defined as the: A. maximum rate of return a firm expects to earn on a project. B. rate of return a project will generate if the project in financed solely with internal funds. C. discount rate that equates the net cash inflows of a project to zero. D. discount rate which causes the net present value of a project to equal zero. E. discount rate that causes the profitability index for a project to equal zero.
10.The present value of an investment's future cash flows divided by the initial cost of the investment is called the:
A. net present value. B. internal rate of return. C. average accounting return. D. profitability index. E. profile period.
11.Which one of the following methods determines the amount of the change a proposed project will have on the value of a firm? A. net present value B. discounted payback C. internal rate of return D. profitability index E. payback
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