The internal rate of return of a project is the rate that leads to a net present value that is

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the discount rate that results in a net present value of zero. This means that the project is expected to generate exactly enough cash flows to cover its initial investment and meet the required rate of return. Therefore, B is the correct answer. A, C, and D are incorrect because they imply a specific target or threshold for the net present value, which may not necessarily be achievable or optimal.

The Internal Rate of Return of a Project Is the Rate