To ﬁnd the __________ we begin by setting the NPV of a project equal to zero.
A) Payback period.
B) Discounted payback period.
C) Internal rate of return.
D) Proﬁtability index.
E) Average accounting return.

Question

Quizplus · Accepted Answer

To find the internal rate of return (IRR), we set the net present value (NPV) of a project equal to zero and solve for the discount rate that makes the NPV equal to zero.

To ﬁNd the __________ We Begin by Setting the NPV