[5] The internal rate of return (IRR) is the A. Hurdle rate. B. Rate of interest for which the net present value is greater than 1.0. C. Rate of interest for which the net present value is equal to zero. D. Accounting rate of return.

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 17Q: What is the difference between the discount rate used for net present value and the internal rate of...
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[5] The internal rate of return (IRR) is the
A. Hurdle rate.
B. Rate of interest for which the net present value is greater than 1.0.
C. Rate of interest for which the net present value is equal to zero.
D. Accounting rate of return.
Transcribed Image Text:[5] The internal rate of return (IRR) is the A. Hurdle rate. B. Rate of interest for which the net present value is greater than 1.0. C. Rate of interest for which the net present value is equal to zero. D. Accounting rate of return.
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