Q469
A discount rate which equals to present value of TV to project cost present value is classified as
A.
negative internal rate of return
B.
modified internal rate of return
AnswerC.
existed internal rate of return
D.
relative rate of return
Answer: Option B
Solution
Answer: Option B
Solution:
A discount rate which equals to present value of TV to project cost present value is classified as modified internal rate of return. The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.