Answer :
The correct Answer is A. The company's required rate of return, typically its cost of capital is called the Internal rate of return.
A key concept in corporate finance and equity valuation is the required internal rate of return. In equity valuation, for example, it is commonly used as a discount rate to determine the present value of cash flows. Investing requires a certain rate of return. The required rate is commonly used to distinguish between feasible and unfeasible investment opportunities. The required rate is commonly used to distinguish between feasible and unfeasible investment opportunities. The general rule is that if the expected return on an investment is less than the required rate, the investment should be rejected. The metric can be tailored to meet the needs and objectives of a specific investor. It can take into account specific investment objectives, as well as risk and inflation expectations.
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