1)  Which one of the following defines the internal rate of return for a project? A

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1)  Which one of the following defines the internal rate of return for a project?

A. Discount rate that creates a zero cash flow from assets

B. Discount rate which results in a Zero net present value equal to the project.

C. Discount rate which results in a net present value equal to the project's initial cost

D. Rate of return required by the project's investors

E. The project's current market rate of return

2. The payback period is the length of time it takes an investment to generate sufficient cash flows to enable the project to:

A. produce a positive annual cash flow

B. produce a positive cash flow from assets.

C. offset its fixed expenses.

D. offset its total expenses.

E. recoup its initial cost

3. A cost that should be ignored when evaluating a project because that cost has already been incurred and cannot be recouped is referred to as which type of cost?

A. Fixed

B. Forgotten

C. Variable

D. Opportunity

E. Sunk

4. Which one of the following terms refers to the best option that was foregone when a particular investment is selected?

A. Side effect

B. Externalities

C. Sunk cost

D. Opportunity cost

E. Marginal cost