{"id":50329,"date":"2024-04-15T23:08:43","date_gmt":"2024-04-15T23:08:43","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=50329"},"modified":"2024-04-15T23:08:43","modified_gmt":"2024-04-15T23:08:43","slug":"in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as\/","title":{"rendered":"In internal rate of returns, discount rate which forces net present values to become zero is classified as"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;positive rate of return&#8221; option2=&#8221;negative rate of return&#8221; option3=&#8221;external rate of return&#8221; option4=&#8221;internal rate of return&#8221; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is: <strong>D. internal rate of return<\/strong><\/p>\n<p>The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of an investment equal to zero. It is a measure of the profitability of an investment, and it is used to compare different investment options.<\/p>\n<p>A positive IRR indicates that an investment is profitable, while a negative IRR indicates that an investment is not profitable. The IRR is often used as a decision-making tool, and it is considered to be one of the most important financial ratios.<\/p>\n<p>A positive rate of return is a rate of return that is greater than zero. This means that an investment is expected to generate a profit. A negative rate of return is a rate of return that is less than zero. This means that an investment is expected to lose money.<\/p>\n<p>An external rate of return is a rate of return that is based on the market conditions. This means that it is the rate of return that an investor would expect to earn on an investment in the market.<\/p>\n<p>The internal rate of return is a rate of return that is based on the cash flows of an investment. This means that it is the rate of return that an investor would expect to earn on an investment based on the cash flows that the investment is expected to generate.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;positive rate of return&#8221; option2=&#8221;negative rate of return&#8221; option3=&#8221;external rate of return&#8221; option4=&#8221;internal rate of return&#8221; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-50329","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>In internal rate of returns, discount rate which forces net present values to become zero is classified as<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"In internal rate of returns, discount rate which forces net present values to become zero is classified as\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;positive rate of return&#8221; option2=&#8221;negative rate of return&#8221; option3=&#8221;external rate of return&#8221; option4=&#8221;internal rate of return&#8221; correct=&#8221;option4&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-15T23:08:43+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"In internal rate of returns, discount rate which forces net present values to become zero is classified as","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as\/","og_locale":"en_US","og_type":"article","og_title":"In internal rate of returns, discount rate which forces net present values to become zero is classified as","og_description":"[amp_mcq option1=&#8221;positive rate of return&#8221; option2=&#8221;negative rate of return&#8221; option3=&#8221;external rate of return&#8221; option4=&#8221;internal rate of return&#8221; correct=&#8221;option4&#8243;]","og_url":"https:\/\/exam.pscnotes.com\/mcq\/in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as\/","og_site_name":"MCQ and Quiz for Exams","article_published_time":"2024-04-15T23:08:43+00:00","author":"rawan239","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rawan239","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/exam.pscnotes.com\/mcq\/in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as\/","url":"https:\/\/exam.pscnotes.com\/mcq\/in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as\/","name":"In internal rate of returns, discount rate which forces net present values to become zero is classified as","isPartOf":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#website"},"datePublished":"2024-04-15T23:08:43+00:00","dateModified":"2024-04-15T23:08:43+00:00","author":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209"},"breadcrumb":{"@id":"https:\/\/exam.pscnotes.com\/mcq\/in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/exam.pscnotes.com\/mcq\/in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/exam.pscnotes.com\/mcq\/in-internal-rate-of-returns-discount-rate-which-forces-net-present-values-to-become-zero-is-classified-as\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/exam.pscnotes.com\/mcq\/"},{"@type":"ListItem","position":2,"name":"Financial management","item":"https:\/\/exam.pscnotes.com\/mcq\/category\/financial-management\/"},{"@type":"ListItem","position":3,"name":"In internal rate of returns, discount rate which forces net present values to become zero is classified as"}]},{"@type":"WebSite","@id":"https:\/\/exam.pscnotes.com\/mcq\/#website","url":"https:\/\/exam.pscnotes.com\/mcq\/","name":"MCQ and Quiz for Exams","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/exam.pscnotes.com\/mcq\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/5807dafeb27d2ec82344d6cbd6c3d209","name":"rawan239","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/exam.pscnotes.com\/mcq\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/761a7274f9cce048fa5b921221e7934820d74514df93ef195a9d22af0c1c9001?s=96&d=mm&r=g","caption":"rawan239"},"sameAs":["https:\/\/exam.pscnotes.com"],"url":"https:\/\/exam.pscnotes.com\/mcq\/author\/rawan239\/"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/50329","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/comments?post=50329"}],"version-history":[{"count":0,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/posts\/50329\/revisions"}],"wp:attachment":[{"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/media?parent=50329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/categories?post=50329"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/exam.pscnotes.com\/mcq\/wp-json\/wp\/v2\/tags?post=50329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}