If the discount rate that is used to evaluate a project is equal to the project's internal rate of return,the project's ____ is zero.
A)profitability index
B)internal rate of return
C)present value of the investment
D)net present value

Question

Quizplus · Accepted Answer

When the discount rate equals the project's internal rate of return (IRR), the net present value (NPV) of the project is zero. This is because the IRR is the discount rate at which the NPV equals zero.

If the Discount Rate That Is Used to Evaluate a Project