The internal rate of return is the

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of a project equal to zero. Put simply, it is the expected rate of return that a project will generate over its lifetime. Therefore, the correct answer is A. The hurdle rate, cost of capital, and required rate of return are all related to the cost of financing the project and the desired return for the investors, but they are not directly related to the IRR.

The Internal Rate of Return Is the