The internal rate of return (IRR) is the interest rate that sets the net present value (NPV) of the cash flows equal to zero.

Name: The internal rate of return (IRR) is the interest rate that sets the net present value (NPV) of the cash flows equal to zero.
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This statement correctly defines the internal rate of return (IRR) as the interest rate that makes the net present value (NPV) of the cash flows equal to zero.

The Internal Rate of Return (IRR) Is the Interest Rate