Relation Between Investment and Internal Rate of Return

As the number of investment made by a firm increase, its internal rate of return

  1. Declines due to diminishing marginal productivity.
  2. Declines because the market rate interest will fall, ceteris paribus.
  3. Increases top compensate the firm for the current consumption foregone
  4. Increase because the level of saving will fall.
Manish Listener Asked on 6th November 2014 in Finance.
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    Declines because the market rate interest will fall, ceteris paribus.

    Monis Rasool Professor Answered on 21st April 2015.
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