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Managerial Accounting

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Which computation would give you IRR?

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Which of the following is a way to discover the Internal Rate of Return (IRR)?

A

The dollar amount of NPV divided by the initial investment.

B

The average annual net after-tax cash flows divided by the initial investment.

C

Determine the discount rate that results in zero net present value (NPV).

D

The discount rate that results in a positive net present value (NPV).