New One Goal, Three Exams: Strategies for Mastering RBI, SEBI, and IFSCA Exams
Register

Question

The discount rate that makes the present value of expected cash flows from the project equal to the initial cost of the project is called:

A Net Present Value Correct Answer Incorrect Answer
B Internal Rate of return Correct Answer Incorrect Answer
C Interest Rate Correct Answer Incorrect Answer
D Base Rate Correct Answer Incorrect Answer
E None of the above. Correct Answer Incorrect Answer

Solution

The discount rate that makes the present value of expected cash flows from the project equal to the initial cost of the project is called the Internal Rate of return.

Practice Next

Relevant for Exams:

×
×