Quiz 1 covers chapter 1 and 3 - San Francisco State University

C3 = +5000, calculate the payback period. A) One year . B) 2 years . C) 3 years . D) None of the above . Answer : B. 2. The IRR is defined as: A) The discount rate that makes the NPV equal to zero . B) The difference between the cost of capital and the present value of the cash flows . C) The discount rate used in the NPV method ................
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