Acctg2020,sec 02 (9:00am) Test:Exam V Chs 11 & 12 This Question: 1 pt 8 of 25 (0

Question

Acctg2020,sec 02 (9:00am) Test:Exam V Chs 11 & 12 This Question: 1 pt 8 of 25 (0 complete) What is an attribute of the intemal rate of return? O A. It is used in the capital rationing process O B. It is the interest rate that makes the NPV of the investment equal to zero. OC. It is the intorest rate that makes the cost of the investment equal to the present O D. All of the above are attributes of the internal rate of retun value of the investment's net cash inflows Click to selact your answer 8 4

Explanation / Answer

Answer is D

all of the above are the attribute of the internal rate of return

as IRR is the rate at which NPV is zero and it also equates present value of cash inflow and cash outflow equal and zero and it is used as a criteria in capital rationing

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