Question
Which of the following is not true regarding the internal rate of return method of evaluating investments? a. The internal rate of return is the
Which of the following is not true regarding the internal rate of return method of evaluating investments?
a. | The internal rate of return is the rate of return of an investment project over its useful life. | |||||||||||||
b. | When a project has identical cash flows in every year, dividing the investment required by the annual net cash inflow results in a factor that can be used to determine the internal rate of return. | |||||||||||||
c. | The internal rate of return method focuses on cash flows rather than accounting net income. | |||||||||||||
d. | The internal rate of return is the discount rate that results in a projects net present value being a positive number
Which of the following is true?
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