The internal rate of return equals the rate that yields a net present value of zero for an investment.

Name: The internal rate of return equals the rate that yields a net present value of zero for an investment.
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Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the rate at which the present value of future cash flows from an investment equals the initial investment cost. In other words, it is the discount rate that makes the net present value (NPV) of an investment zero. Therefore, the statement is true.

The Internal Rate of Return Equals the Rate That Yields