Question

The internal rate of return is

not a viable alternative to the NPV.

seldom used in practice.

the return that makes the NPV = 0.

none of the above.

2. The internal rate of return can be calculated

using a trial and error method.

using Microsoft Excel.

using a financial calculator.

all of the above.

Answer 1

Hello

Q - 1 - YOUR REQUIRED ANSWER IS OPTION C : the return that makes the NPV = 0

• It's a great alternative to NPV.
• Its' used in practice a lot of times.

Q - 2 - YOUR REQUIRED ANSWER IS OPTION D : ALL OF THE ABOVE

IRR can be calculated using trial and error method by using 2 different rates and then interpolating them, using excel using "=IRR" function and using financial calculator using IRR button.

Thanks!

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