Elance Exams Answers PDF file

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What is the internal rate of return?

The internal rate of return is the interest rate that will discount an investment’s future cash amounts so that the sum of the present values will be equal to cash paid at the beginning of the investment
In capital budgeting, the internal rate of return is the interest rate that results in an investment having a net present value of zero.
Both of these describe the internal rate of return.
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