The internal rate of return will tell you the _____ which can be applied to a project while still creating a situation where the project is acceptable.
A) minimum discount rate
B) maximum discount rate
C) minimum period of time
D) maximum period of time
E) accounting rate

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a financial metric used to estimate the profitability of potential investments. It represents the maximum discount rate that can be applied to the cash flows of a project without making the net present value (NPV) of all cash flows (both incoming and outgoing) from a project equal to zero. In other words, it's the break-even rate of return, beyond which the project would start to lose value.

The Internal Rate of Return Will Tell You the _____