The internal rate of return of a project can be found by
A) discounting all cash flows at the cost of capital.
B) averaging all cash inflows, and calculating the interest rate, which will make them equal to the average investment.
C) calculating the interest rate, which will equate the present value of all cash inflows to the present value of all cash outflows.
D) None of the above
C
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If there is an advancement in the technology used to produce a product, what is the likely effect it may have on the supply?
A) The company would not change its manufacturing. B) It would increase the supply. C) It would decrease the supply. D) More people would be needed to produce the product.
Which of the following observations is true? a. Sunk costs are irrelevant for any future action
b. Sunk costs should not be ignored when making decisions. c. Sunk costs are often hidden. d. Sunk costs can be recovered using corrective measures.