2D2A FOR A GIVEN INVESTMENT PROJECT, THE INTEREST RATE AT WHICH THE P...

335.

CSO: 2D2b

LOS: 2D2a

For a given investment project, the interest rate at which the present value of the cash

inflows equals the present value of the cash outflows is called the

a.

hurdle rate.

b.

payback rate.

c.

internal rate of return.

d.

cost of capital.