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Interest Rates are sometimes referred to as O Yield O Future Value O Compounding rate O None of these QUESTION 29 John borrows $100,000 from
Interest Rates are sometimes referred to as O Yield O Future Value O Compounding rate O None of these QUESTION 29 John borrows $100,000 from the bank at 8% interest and uses the capital to start an internet marketing company. Based on his forecast of future profits over five years, he calculates his internal rate of return at 10%. Inflation is also running at 2% annually is this a good investment? Yes, John is earning a higher Internal Rate of Return that the loan. Yes, John's Internal Rate of Return with Inflation is returning 12%, and his loan is % No, after inflation John is just breaking even and therefore not earning a proft There's not enough information to answer this question QUESTION 30 The Internal Rate of Return (IRR) and the Return on Investment (ROI) formulas can be used interchangeably when calculating growth rates over 5 years or more True O False
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