The internal rate of return of a project can be found by A) ...

[ghost!]

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

Question 2

Decreasing returns to scale
 
  A) indicate that an increase in all inputs by some proportion will result in a decrease in output.
  B) must always occur at some point in the production process.
  C) are directly related to the law of diminishing returns.
  D) All of the above are true.
  E) None of the above is true.

[Jody Vaughn]

Answer to Question 1

C

Answer to Question 2

E