The internal rate of return is the rate of return that yields a zero net present value.

Name: The internal rate of return is the rate of return that yields a zero net present value.
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Question

Quizplus · Accepted Answer

The definition of internal rate of return (IRR) is that it is the discount rate that equates the present value of cash inflows with the present value of cash outflows, resulting in a net present value (NPV) of zero. Therefore, Option A is correct.

The Internal Rate of Return Is the Rate of Return