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Author Question: In using the Internal Rate of Return approach, one must first calculate the discount rate on the ... (Read 69 times)

codyclark

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In using the Internal Rate of Return approach, one must first calculate the discount rate on the investment that makes
 
  A) the net present value equal zero.
  B) the interest rate equal zero.
  C) the interest rate equal the discount rate.
  D) the first year's return positive.

Question 2

Suppose a new cost-saving device will forever generate 1,000 net savings per year to a firm. The device costs 10,000. Using the Internal Rate of Return approach, will the firm make the investment?
 
  A) definitely
  B) definitely not
  C) if the interest rate exceeds 10
  D) if the interest rate is less than 10


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GCabra

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codyclark

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Reply 2 on: Jul 1, 2018
Excellent


ttt030911

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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