Question
What does the internal rate of return (IRR) represent? The discount rate that measures the profitability of potential. The discount rate that equates the present
What does the internal rate of return (IRR) represent?
| The discount rate that measures the profitability of potential. | ||
| The discount rate that equates the present value of the cash inflows with the initial outlays. | ||
| The discount rate that makes the NPV positive. | ||
| The discount rate that assumes future cash flows are reinvested at a rate lower than the IRR. |
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Accounting Principles Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
8th Canadian Edition
978-1119502425
