If the internal rate of return (IRR) is negative, then the investor
A)Loses money
B)Gains money
C)Neither gains nor loses money
D)None of the above

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a metric used to evaluate the profitability of potential investments. A negative IRR indicates that the present value of future cash flows is less than the initial investment, meaning the investor loses money.

If the Internal Rate of Return (IRR) Is Negative, Then