# Internal rate of Return MCQs Quiz Online PDF Book Download

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## MCQ on Internal rate of ReturnQuiz Book Download

MCQ: In capital budgeting, an internal rate of return of project is classified as its

- external rate of return
- internal rate of return
- positive rate of return
- negative rate of return

B

MCQ: In internal rate of returns, discount rate which forces net present values to become zero is classified as

- positive rate of return
- negative rate of return
- external rate of return
- internal rate of return

D

MCQ: A modified internal rate of return is considered as present value of costs and is equal to

- p.v of hurdle rate
- fv of hurdle rate
- p.v of terminal value
- fv of terminal value

C

MCQ: A discount rate which is equal to present value of TV to project cost present value is classified as

- negative internal rate of return
- modified internal rate of return
- existed internal rate of return
- relative rate of return

B

MCQ: In calculation of internal rate of return, an assumption states that received cash flow from project must

- be reinvested
- not be reinvested
- be earned
- not be earned

A