Internal rate of return is: a. the interest rate which on firm uses to lend money...

Question

Question

Internal rate of return is: a. the interest rate which on firm uses to lend money to other firms b. the interest rate at whic

business economics

Answer 1

Answer #1

The internal rate of return the rate of return at which the net present value of all cash is rom a particular project is equal to zero .

it is the rate of return that is expected by a company in any project for avoiding the losses

It is not the interest rate at which the firm used to lend money to other firms, neither it is the interest rate for the borrowing money .

or borrowing money, interest rate is charged generally by the banks.

Show the correct answer is option B

Answer 2

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