To find the __________ we begin by setting the NPV of a project equal to zero.
A) Payback period.
B) Discounted payback period.
C) Internal rate of return.
D) Profitability index.
E) Average accounting return.

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) is found by setting the Net Present Value (NPV) of a project equal to zero and solving for the discount rate. This method is used to estimate the profitability of potential investments.

To Find the __________ We Begin by Setting the NPV