The capital budgeting technique that finds the actual interest yield of the pote

Question

The capital budgeting technique that finds the actual interest yield of the potential investment is the
A. Annual rate of return method B. Internal rate of return method C. Net present value method D. Profitability index method The capital budgeting technique that finds the actual interest yield of the potential investment is the
A. Annual rate of return method B. Internal rate of return method C. Net present value method D. Profitability index method
A. Annual rate of return method B. Internal rate of return method C. Net present value method D. Profitability index method

Explanation / Answer

B. Internal rate of return method

Internal rate of return is the interest rate at which the net present value of all the cash flows from a project or investment equal zero.

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