Internal rate of return and net present value are synonymous terms.
A)True
B)False
C)none
D)all

Question

Quizplus · Accepted Answer

Internal rate of return (IRR) and net present value (NPV) are not synonymous; they are distinct financial metrics used to evaluate the profitability of investments. IRR is the discount rate that makes the NPV of all cash flows from a particular project equal to zero, while NPV calculates the difference between the present value of cash inflows and outflows over a period of time.

Internal Rate of Return and Net Present Value Are Synonymous