The _____ of an investment makes the net present value of all cash flows (benefits and costs)generated by a project equal to zero.
A) payback period
B) earnings growth
C) time value of money
D) internal rate of return

Question

Quizplus · Accepted Answer

The statement is referring to the calculation of the internal rate of return (IRR), which is the discount rate that makes the net present value (NPV) of all cash flows generated by a project equal to zero. The other options, such as payback period, earnings growth, and time value of money, are related but are not directly applicable to this specific statement.

The _____ of an Investment Makes the Net Present Value