The internal rate of return

Post 267

SSC CHSL Questions 2014

Question 173 The internal rate of return

A) must be less than the interest rate if the firm is to invest

B) makes the present value of profits equal to the present value of costs.

C) falls as the annual yield of an investment rises.

D) is equal to the market interest rate for all the firm's investment.

Answer: Comment below if you know the correct answer with reasoning.

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Question 174 As the number of investments made by a firm increases, its internal rate of return

A) declines due to diminishing marginal productivity

B) declines because the market rate of interest will fall, ceteris paribus.

C) increases to compensate the firm for the current consumption foregone.

D) increases because the level of savings will fall.

Answer:  Comment below if you know the correct answer with reasoning.