alleryStart learning →IRR is the abbreviation for which method?
AInvestment risk rating
BInitial revenue result
CInternal rate of return
DInterest rate ratio
Answer & Solution
Correct answer: C. Internal rate of return
1. The second time value method also has an abbreviation.
2. The net present value method is abbreviated NPV.
3. The internal rate of return is abbreviated IRR.
4. Both account for the time value of money.
_Source: OpenStax Principles of Accounting, Volume 2: Managerial Accounting (CC BY-NC-SA 4.0), Ch 11 'Capital Budgeting Decisions'_
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