The internal rate of return equates the net present value and the cost of an investment.

Name: The internal rate of return equates the net present value and the cost of an investment.
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Question

The internal rate of return equates the net present value and the cost of an investment.​

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. It does not equate NPV and the cost of an investment; rather, it finds the rate at which they are equal.

The Internal Rate of Return Equates the Net Present Value