Which one of the following is an acceptable definition of the internal rate of return?

Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Next Question:
What is true for the net present value of the project over the three years cycle...
Posted by:
DR MD ANWAR HOSSAIN
11-October-2016

1. The discount rate that results in a zero Net Present Value for a project.2. The time it takes to repay the initial investment.3. The discounted cash flows as a percentage of the amount invested.4. The annualized profits as a percentage of the amount invested.

Financial Management

Question ajoutée par Utilisateur supprimé
Date de publication: 2013/08/19

Apprécier (2) Vues (10) Suiveurs (2) Réponses (3) Report Question

Ajoutez Une Réponse
Inscrivez-vous ou connectez-vous pour répondre.

3 Réponses

par Utilisateur supprimé

Option1 is the right answer

Apprécier (3)

Déprécier Réponses () Rapport

par Mohamed Mahfouz , Group Financial Manager , Ahdaf Holding (Al-Hussein and Al-Afaliq Group of Companies )

number3 is the right one

Apprécier (0)

Déprécier Réponses () Rapport

par Mohammad Al-Shayeb , Finance Manager , Syriatel

1- Answer1 is correct ( The IRR is the rate that makes the present value of the expected cash inflows equal the present value of the expected cash outflows ).

2- Answer2 is wrong (It is not a time, it is the discounted rate that makes the present value of the expected cash inflows equal the present value of the expected cash outflows ).

3- Answer3 is wrong (It is not a percentage of the amount invested, it is the discounted rate that makes the present value of the expected cash inflows equal the present value of the expected cash outflows ).

4- Answer4 is wrong (It doesn't make any profit or loss since it makes the present value of the expected cash inflows equal the present value of the expected cash outflows ).

Apprécier (0)

Déprécier Réponses () Rapport