Which one of the following is most closely related to the net present value profile?
A)Internal rate of return
B)Average accounting return
C)Profitability index
D)Payback
E)Discounted payback

Question

Quizplus · Accepted Answer

The net present value (NPV) profile is most closely related to the internal rate of return (IRR) as both involve discounting future cash flows and are used to evaluate investment projects. The IRR is the discount rate at which the NPV equals zero.

Which One of the Following Is Most Closely Related to the Net