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In capital budgeting, an internal rate of return of project is classified as its

In capital budgeting, an internal rate of return of project is classified as its Correct Answer internal rate of return

In capital budgeting, an internal rate of return of project is classified as its internal rate of return. Internal rate of return (IRR) is the interest rate at which the NPV of all the cash flows (both positive and negative) from a project or an investment equals zero.

Related Questions

Which of the following is/was the type of budgetary practice followed in India? 1. Zero-base budgeting 2. Output and outcome budgeting 3. Development budgeting 4. Programmed Budgeting Choose the correct answer using the codes below
In a school, a Science project has been assigned to three students Rajat, Rohan, and Bishal and it was told that they should work together on that project. Working alone Rohan can finish the project in 20 days, it is also given that if Rajat and Bishal work on the project they will take 9 days to complete the project. Bishal alone can complete the project in 15 days. Rohan started working on the project from Monday but after 8 days he left and after that Rajat and Bishal started working on it but Bishal also left 6 days before completion of the work and Rajat completed the remaining project, in how many days will the project be completed and on which day will it be completed?
Two stock options are available for buying. Each offers a variable rate of return of profit over a period of 10 years. For first 4 years one has an incremental rate of return which increases by 2% per year starting from 3% of the investment and stays constant at 8% for the rest of the period. The second one has a constant annual rate of return throughout and give 10% more return after 10 years. What is the annual rate of return on second option?
The payback period can become an important issue when a large scope project is developed over several years. Maureen has been assigned the responsibility of calculating the payback period for her project that is to be completede in 3 years. The internal rate of return(IRR) is 7% and the annual savings will be $800,000 per year. The total cost is $4,000,000 and the rate of return during this time period is 3%. What is the payback period of Maureen's project?
When labour is plotted on X-axis and capital is plotted on Y-axis and an iso-quant is prepared, then which of the following statements is/are false ? (a) Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant. (b) Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour. (c) Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.
When labour is plotted on X-axis and capital is plotted on Y-axis and an isoquant is prepared, then which of the following statement(s) is/arefalse?
1. Marginal rate of technical substitution of labour for capital is equal to the slope of the iso-quant.
2. Marginal rate of technical substitution of labour for capital is equal to change in the units of capital divided by the change in the units of labour.
3. Marginal rate of technical substitution of labour for capital is the ratio of marginal productivity of capital to marginal productivity of labour.
Following are the stages of Project Method in Teaching of Mathematics without any logical order -  a. Choosing and purposing the Project b. Executing the Project c. Providing a situation d. Planning of the Project e. Recording of the Project f. Evaluation of the Project Out of the following which alternative shows correct sequence of the above mentioned stages of Project Method?
Arrange the following steps of 'adjustment of old partners' capital on the basis of incoming partner's capital in a correct order.
1. Ascertain the present capital of the old partners.
2. Calculation of total capital of firm on the basis of new partner's capital.
3. Finding the surplus/deficit capital.
4. Determining the new capital of each partner.
Select the correct answer:
Read the following statements:
1. The rate of return on investment increases with the shortage of working capital.
2. Net working capital is the excess of current assets over current liabilities.
3. Greater the size of the business unit, larger will be the requirement of working capital.
4. Working capital is also known as circulating capital.
Which one of the following consists of the correct statements?
Which of the following variables is not known in Internal Rate of Return methods of capital budgeting?