Internal rate of return methodA) Method that does not use present valueB) Method that uses present value

Question

Christopher Godbold · Accepted Answer

Final Answer : B, Explanation :  The internal rate of return method is a capital budgeting technique that uses present value concepts. It calculates the discount rate at which the net present value of the project is equal to zero. Therefore, it falls under category B, which is the method that uses present value.

Internal rate of return method

A) Method that does not use present value
B) Method that uses present value

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Learning Objectives

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