Which one of the following is the estimated rate (i.e., percentage) that makes the discounted present value of future after-tax cash inflows of a project equal to the initial investment outlay for the project?
A) Weighted-average cost of capital (WACC).
B) Payback period, in years.
C) Book (accounting) rate of return.
D) Internal rate of return (IRR).
E) Accounting rate of return (ARR), after tax.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the estimated rate that makes the discounted present value of future after-tax cash inflows of a project equal to the initial investment outlay for the project.

Which One of the Following Is the Estimated Rate (I