In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?

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Accepted Answer

Internal rate of return - The Internal Rate of Return (IRR) is defined as the discount rate that makes the Net Present Value (NPV) of cash flows equal to zero, which is why it is called the project's internal rate of return.

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In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?

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MCQ Detailed View

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?

Detailed Explanation

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Discussion

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…

In Internal Rate of Return (IRR), the discount rate that makes Net Present Value (NPV) zero is called…