If the internal rate of return is used to discount all cash flows associated with a project, the net present value of the project will be equal to zero.

Question

Quizplus · Accepted Answer

The net present value (NPV) of a project is zero when the discount rate used is equal to the internal rate of return (IRR), as IRR is the rate at which the present value of cash inflows equals the present value of cash outflows.

If the Internal Rate of Return Is Used to Discount