A popular method of calculating the expected rate of return from a business investment project is the:
A) Operating capacity method
B) Marginal cost-of -capital approach
C) Internal rate-of-return method
D) Risk-adjusted net-cash-flow approach
E) Certainty-equivalent cost analysis
F) None of the above

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) method is a popular method for calculating the expected rate of return from a business investment project. It estimates the profitability of potential investments using a percentage rate, which is a widely recognized criterion for investment decision-making.

A Popular Method of Calculating the Expected Rate of Return