Which of the following is the term used to describe the discount rate at which the present value of a project's cash inflows will equal the present value of its cash outflows? multiple choice Internal Rate of Return Minimum Required Rate of Return Simple Rate of Return
Added by Javier M.
Step 1
Step 1: The term used to describe the discount rate at which the present value of a project's cash inflows will equal the present value of its cash outflows is called the Internal Rate of Return (IRR). Show more…
Show all steps
Your feedback will help us improve your experience
Derrick Danso and 78 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
The internal rate of return for a project can be determined: A) only if the project's cash flows are constant. B) by finding the discount rate that yields a zero net present value for the project. C) by subtracting the company's cost of capital from the project's profitability index. D) only if the project profitability index is greater than zero.
Derrick D.
When comparing two mutually exclusive projects, which ONE of the following would be a valid criteria to use to choose one project over the other? a. The project with a lower modified internal rate of return is preferred. b. The project with a lower net present value with infinitely replicated cash flows is preferred. c. The project with a lower internal rate of return is preferred. d. The project with a lower payback period is preferred. e. The project with a lower profitability index is preferred.
Mauya M.
Which of the following does not assign a value to a business opportunity using time-value measurement tools? A. internal rate of return (IRR) method B. net present value (NPV) C. discounted cash flow model D. payback period method
Capital Budgeting Decisions
Use Discounted Cash Flow Models to Make Capital Investment Decisions
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD