## Discount rate that makes the net present value of an investment exactly equal to zero

3 Jul 2019 The net present value rule (NPV) states that an investment should be accepted if the NPV is greater than zero, and it should be rejected otherwise. The computation will factor in the time value of money by discounting the A project or investment's NPV equals the present value of net cash inflows the Net Present Value (NPV) is the sum of the present values of the cash inflows and outflows. There is the cash that is required to make the investment and ( hopefully) the return. In order It is the discount rate at which the NPV is equal to zero. When the NPV of a particular project is exactly zero, the IRR will yield cost of Therefore, NPV is equal to zero when the discount rate is in between 15% and 20 %. investment's future cash flows, makes the NPV of an investment equal zero. A. The net present value is positive, which makes the project attractive. cash flows from a particular project equal to zero. What will be the NPV (net present value) of this project if a discount rate of 15% is used? Explanation: As the NPV technique is the most reliable investment appraisal technique and Project W.

## The Discount Rate That Makes The Net Present Value Of An Investment Exactly Equal To Zero Is Called The: A. Internal Rate Of Return. B. External Rate Of Return. C. Profitability Index. D. Average Accounting Return. E. Equalizer.

When the NPV of a particular project is exactly zero, the IRR will yield cost of Therefore, NPV is equal to zero when the discount rate is in between 15% and 20 %. investment's future cash flows, makes the NPV of an investment equal zero. A. The net present value is positive, which makes the project attractive. cash flows from a particular project equal to zero. What will be the NPV (net present value) of this project if a discount rate of 15% is used? Explanation: As the NPV technique is the most reliable investment appraisal technique and Project W. In the process of energy management, at some stage, investment would be required for ciency it should apply exactly the same criteria to reducing its energy Simple Payback - a measure of how long it will be before the investment makes money, set the net present value equal to zero and determine the discount rate 4 Dec 2014 The discount rate that makes the net present value of an investment exactly equal to zero is called the: A. external rate of return. B. internal rate

### Answer to 22 The discount rate that makes the net present value of an investment exactly equal to zero is called the: external rat

14 Feb 2019 11.4 Use Discounted Cash Flow Models to Make Capital Investment Decisions Net present value (NPV) discounts future cash flows to their present value at NPV equals zero, so it determines the actual rate of return a project earns. At a net present value of zero, the IRR would be exactly equal to the

### 25 Jun 2019 Net Present Value (NPV) is the difference between the present value of cash NPV is used in capital budgeting and investment planning to analyze the The discount rate element of the NPV formula is a way to account for this. The full calculation of the present value is equal to the present value of all

The discount rate that makes the net present value of an investment exactly equal to zero is called the: Internal Rate of Return The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment is called the: The discount rate that makes the net present value of an investment exactly equal to zero is called the: internal rate of return. average accounting return. profitability index. external rate of return. The discount rate that makes the net present value of an investment exactly equal to zero is the: One reason why cash flow analysis is popular is: The cash flow tax savings generated as a result of a firm's tax-deductible depreciation expense is called the: depreciation tax shield. Answer to 22 The discount rate that makes the net present value of an investment exactly equal to zero is called the: external rat The discount rate that makes the net present value of an investment exactly equal to zero is called the: A. Equalizer.

## When the NPV of a particular project is exactly zero, the IRR will yield cost of Therefore, NPV is equal to zero when the discount rate is in between 15% and 20 %. investment's future cash flows, makes the NPV of an investment equal zero.

Equivalently, it is the discount rate at which the net present value of the future cash flows is equal to the initial investment, and it is also the discount rate at which In finance, the net present value (NPV) or net present worth (NPW) applies to a series of cash The IRR is the discount rate for which the NPV is exactly 0. Re -investment rate can be defined as the rate of return for the firm's investments on This also makes the simplifying assumption that the net cash received or paid is The discount rate that makes the net present value of an investment exactly equal to zero is the: A)Payback period. B)Internal rate of return. C)Average The discount rate that makes the net present value of an investment exactly. value of an investment exactly equal to zero is called the: - internal rate of return .

The discount rate that makes the net present value of an investment exactly equal to zero is called the: internal rate of return A financing project is acceptable if its IRR is: The discount rate that makes the net present value of an investment exactly equal to zero is called the: internal rate of return. A situation in which accepting one investment prevents the acceptance of another investment is called the: The discount rate that makes the net present value of an investment exactly equal to zero is called the: A. external rate of return. B. internal rate of return. C. average accounting return. D. profitability index. E. equalizer. The discount rate that makes the net present value of an investment exactly equal to zero is called the: Internal Rate of Return The length of time required for an investment to generate cash flows sufficient to recover the initial cost of the investment is called the: The discount rate that makes the net present value of an investment exactly equal to zero is called the: internal rate of return. average accounting return. profitability index. external rate of return.