The IRR is the discount rate that equates the present value of the project's future net cash flows with the project's initial outlay.

Name: The IRR is the discount rate that equates the present value of the project's future net cash flows with the project's initial outlay.
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Question

Quizplus · Accepted Answer

This statement correctly defines the Internal Rate of Return (IRR). It is the discount rate at which the net present value (NPV) of all cash inflows equals the initial investment. Therefore, the statement is true.

The IRR Is the Discount Rate That Equates the Present