Answered: The rate of return that equates the…

The rate of return that equates the present value of cash inflows and outflows is the: A. hurdle rate. B. desired rate of return. C. internal rate of return. D. minimum rate of return.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 15MC: The IRR method assumes that cash flows are reinvested at _________. A. the internal rate of return...

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Question

The rate of return that equates the present value of cash inflows and outflows is the:

A. hurdle rate.
B. desired rate of return.
C. internal rate of return.

D. minimum rate of return.

Definition Definition Transfer of funds into a company by any third party, which may happen due to any operational, investing, and financing activities. The cash inflow includes payments made by customers or investments made by the investors into the company by purchasing its equity.

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