A project with IRR = __________ just breaks even in a financial sense.
A) 0%
B) AAR
C) the project's required return
D) 100%
E) -100%

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. If the IRR equals the project's required return, it means the project is expected to generate a return exactly equal to the cost of capital, thus breaking even in a financial sense.

A Project with IRR = __________ Just Breaks Even in a Financial