Which of the following is a true statement regarding the internal rate of return in capital budgeting?
A)It provides the same basic information as the net present value method.
B)It calculates the net present value of future cash flows.
C)It calculates the proposal's rate of return.
D)It doesn't consider the time value of money.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) calculates the proposal's rate of return by finding the discount rate that makes the net present value (NPV) of future cash flows equal to zero.

Which of the Following Is a True Statement Regarding the Internal