Of the investment decision appraisal methods listed which will determine a discount rate which applied to cash flows will produce a net present value of zero?

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) is the discount rate at which the net present value of an investment equals zero. Therefore, choosing the appropriate discount rate based on the IRR will lead to a net present value of zero. The other methods do not involve determining a discount rate and are not directly related to the net present value of an investment.

Of the Investment Decision Appraisal Methods Listed Which Will Determine