The correct definition of internal rate of return

Assignment Help Financial Management

Reference no: EM131998483

1. Which of the following is the correct definition of Internal Rate of Return (IRR)?

IRR is the rate at which the present value of all future cash flows equals initial outlay. IRR is the same as Average Accounting Rate of Return.

IRR is the rate at which the Net Present Value (NPV) equals present value of all future cash flows.

IRR is the rate of return required by project's investors.

IRR is the rate at which Net Present Value (NPV) equals initial outlay.

2. Which one of the following indicates that a project is expected to create value for its owners?

Profitability index less than zero

Positive IRR

Internal rate of return (IRR) that is less than the required rate of return

NPV that is greater than zero

Payback period greater than the cut-off period

Reference no: EM131998483

Questions Cloud

What are the modes available for branchcache : What are the modes available for BranchCache? Why would one mode be applicable over another?

What is equivalent annual annuity : How much does the trader gain (or lose) when the futures price quote increases by 15 basis points? what is the equivalent annual annuity?

Execute a short computer program using c programming : Execute a short computer program using C programming that reads integer numbers, entered from a keyboard, until the same number is entered twice in a row

Describe the concept of spread spectrum technique : a. Briefly describe the concept of spread spectrum technique and list three important benefits.

The correct definition of internal rate of return : Which of the following is the correct definition of Internal Rate of Return (IRR)?

Member of the accounting group : The user must be a member of the Accounting group. The user must be using a computer on the company subnet.

Develop the training objective for this program : Determine the training cost for the training program you are proposing. Include a detailed breakdown of time allotted for each piece.

What rate of return must be earned on net proceeds : Determine what rate of return must be earned on net proceeds to corporation so there will not be dilution in earnings per share during year of going public.

How these changes will affect the it industry : How these changes will affect the IT industry and your own life and you move forward?

User Account

All Pages