Author Question: To calculate the internal rate of return on a factory that would yield a perpetual future stream of ... (Read 66 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?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

For about 100 years, scientists thought that peptic ulcers were caused by stress, spicy food, and alcohol. Later, researchers added stomach acid to the list of causes and began treating ulcers with antacids. Now it is known that peptic ulcers are predominantly caused by Helicobacter pylori, a spiral-shaped bacterium that normally exist in the stomach.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

For a complete list of videos, visit our video library