İşletmeye Giriş Deneme Sınavı Sorusu #1234691
What is Internal Rate of Return (IRR)?
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The discount rate that equates the present value of future cash flows with the initial outlay of the project. |
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The number of years needed to recover the initial investment outlay. |
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The expected benefits of the investment in the form of cash flows. |
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The indicator that helps a company to evaluate the performance of an investment or product. |
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It is any asset of a borrower a lender can use to pay the debt if the borrower is unable pay back the loan. |
IRR is the discount rate that equates the present value of future cash flows with the initial outlay of the project. If the IRR is above the shareholders’ required rate of return, then the project should be accepted. However, if the IRR of the project is below the required rate of return, it should be rejected.
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