Interest rate earned from the income of an investment

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Reference no: EM13771382

True or False

1. The internal rate of return on an investment refers to the interest rate earned from the income of an investment.

2. The meaning of Internal Rate of Return is best stated as a measure of the interest rate that makes the incomes and the expenses equivalent.

3. In rate of return analysis it is not difficult to use interest trial and error and interpolation between different interest rate.

4. Internal Rate of Return represents the interest rate of the expenses of the project.

5. You only interpolate between cash flow factors.

6. When computing the IRR you do not need to use trial an error method.

7. Internal Rate of Return is also called Return of the Investment.

8. Rate of Return (ROR) is rate paid on the unpaid balance of borrowed money.

9. The IRR method gives consistent results as the PW or EAW methods.

10. IRR gives positive and negative interest rate return.

Reference no: EM13771382

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