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Management · Q325

Financial Management

Graduate and Post Graduate · Management · question 325

Q325

Rate of return that an investment provides its investor is classified as

A.
investment return rate
B.
internal rate of return
Answer
C.
international rate of return
D.
intrinsic rate of return

Answer: Option B

Solution

Answer: Option B
Solution:
Rate of return that an investment provides its investor 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.