The interest rate at which the present value of costs equals the present value benefits is the
A)coupon interest rate.
B)yield to maturity.
C)internal rate of return.
D)market interest rate

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the interest rate at which the present value of costs equals the present value of benefits in a project or investment. It is also known as the break-even interest rate. The coupon interest rate is the fixed interest rate paid on a bond, the yield to maturity is the expected total return on a bond if held until maturity, and the market interest rate is the prevailing rate at which money can be borrowed or lent in the market.

The Interest Rate at Which the Present Value of Costs