Author Question: To calculate the internal rate of return on a factory that would yield a perpetual future stream of ... (Read 74 times)

cartlidgeashley

  • Hero Member
  • *****
  • Posts: 572
To calculate the internal rate of return on a factory that would yield a perpetual future stream of income, one would divide
 
  A) the annual future payment by the cost of the factory.
  B) the sum of the future payments by the cost of the factory.
  C) the cost of the factory by the rate of interest.
  D) the cost of the factory by the annual future payment.

Question 2

Using the Internal Rate of Return approach to investment, one would undertake an investment if the internal rate of return
 
  A) equals zero.
  B) equals the interest rate.
  C) exceeds the interest rate.
  D) is less than the interest rate.


briseldagonzales

  • Sr. Member
  • ****
  • Posts: 303
Answer to Question 1

A

Answer to Question 2

C



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates’s recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

In most climates, 8 to 10 glasses of water per day is recommended for adults. The best indicator for adequate fluid intake is frequent, clear urination.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

For a complete list of videos, visit our video library