What is the internal rate of return (IRR)? A) The discount rate that makes the NPV of a project zero B) The rate of return that minimizes the risk of a project C) The return earned on the initial investment over a fixed period D) The expected rate of return in the future solve

What is the internal rate of return (IRR)? A) The discount rate that makes the NPV of a project zero B) The rate of return that minimizes the risk of a project C) The return earned on the initial investment over a fixed period D) The expected rate of return in the future solve

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 3DQ

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Question

What is the internal rate of return (IRR)?

A) The discount rate that makes the NPV of a project zero

B) The rate of return that minimizes the risk of a project

C) The return earned on the initial investment over a fixed period

D) The expected rate of return in the future
solve

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If the net present value of a project is positive, the project earns a return that is Group of answer choices - equal to the required rate or return - greater than the required rate of return - equal to the accounting rate of return - greater than the accounting rate of return