When the net cash inflow is the same every year for a project after the initial investment, the internal rate of return of a project can be determined by dividing the initial investment required in the project by the annual net cash inflow. This computation yields a factor that can be looked up in a table of present values of annuities to find the internal rate of return.
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Q1: The internal rate of return is the
Q3: The minimum required rate of return is
Q4: The payback method is most appropriate for
Q5: The internal rate of return method assumes
Q6: Discounted cash flow techniques automatically take into
Q7: An investment project with a profitability index
Q8: Neither the net present value method nor
Q9: The net present value method assumes that
Q10: The cost of capital is the average
Q11: The salvage value of new equipment should
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