The internal rate of return is that discount rate that sets the present value of cash flows from an investment equal to its par value.

Name: The internal rate of return is that discount rate that sets the present value of cash flows from an investment equal to its par value.
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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, not its par value.

The Internal Rate of Return Is That Discount Rate That