When internal rate of return is used to evaluate a capital investment, the present value factor is computed as:
multiple choice
net cash flows divided by initial investment.
the sum of the present values of the project's annual net cash flows.
initial investment divided by annual net cash flows. Correct
the hurdle rate.
Explanation
Knowledge Check 01
When internal rate of return is used to evaluate a capital investment, the present value factor is computed as initial investment divided by annual net cash flows.
Monday 9 May 2022
When internal rate of return is used to evaluate a capital investment, the present value factor is computed as
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