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The discount rate at which that measure equals zero is the:
AInternal rate of rebate
BInternal rate of return
CInternal rate of receipt
DInternal rate of revenue
Answer & Solution
Correct answer: B. Internal rate of return
1. It is where the graph crosses the axis.
2. In the example it sits near 14 per cent.
3. It is the internal rate of return.
_Source: OpenStax Principles of Finance 2e, Chapter 16, How Companies Think about Investing._
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