The internal rate of return method uses cash flows rather than net income.

Name: The internal rate of return method uses cash flows rather than net income.
Brand: Quizplus
Rating: 4.9 (57 reviews)

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) method is a capital budgeting technique that takes into account cash flows and not just net income. It measures the rate of return that a project is expected to generate based on its cash flows over the investment period.

The Internal Rate of Return Method Uses Cash Flows Rather