Explore BrainMass
Share

Internal rate of return

This content was STOLEN from BrainMass.com - View the original, and get the already-completed solution here!

The internal rate of return is:
Answer
the discount rate that makes the NPV positive.
the discount rate that equates the present value of the cash inflows with the present value of the cash outflows.
the discount rate that makes NPV negative.
the rate of return that makes the NPV positive.

One disadvantage of the NPV method is that:
Answer
the NPV deals with cash flows.
the NPV gives equal regard to all returns within a project's life.
the NPV will always give the same project accept/reject decision as the IRR.
the NPV requires long, detailed cash flow forecasts.

© BrainMass Inc. brainmass.com December 20, 2018, 8:13 am ad1c9bdddf
https://brainmass.com/business/capital-budgeting/internal-rate-of-return-437413

Solution Preview

he internal rate of return is:
Answer

the discount rate that equates the present value ...

Solution Summary

Solution discusses internal rate of return

$2.19