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What Is True Concerning the Internal Rate of Return (IRR)method

Question 62

Multiple Choice

What is true concerning the internal rate of return (IRR) method?


A) The IRR method determines the discount rate that equates the net present value of the series to the initial investment.
B) The IRR method determines the discount rate that equates the net present value of the series to hurdle rate.
C) The IRR method determines the discount rate that equates the net present value of the series to cut-off rate.
D) The IRR method determines the discount rate that equates the net present value of the series to zero.

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