Q456
In internal rate of returns, discount rate which forces net present values to become zero is classified as
A.
positive rate of return
B.
negative rate of return
C.
external rate of return
D.
internal rate of return
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
In internal rate of returns, discount rate which forces net present values to become zero is classified as internal rate of return. The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.