The interest rate calculated to the point where the present value of cash inflows is equal to the present value of cash outflows is called __________.
A) net present value
B) internal rate of return
C) capital budgeting
D) marginal analysis

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero. This method is used to evaluate the attractiveness of a project or investment.

The Interest Rate Calculated to the Point Where the Present