MCQOPTIONS
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| 1. |
internal rate of return |
| A. | falls when the annual return of an investment increases |
| B. | Makes the present value of benefits equal to the present value of costs. |
| C. | The market interest rate for all investments of the firm is equal to |
| D. | should be less than the rate of interest, if the firm is to invest |
| Answer» B. Makes the present value of benefits equal to the present value of costs. | |