If the net present value is zero, the internal rate of return will be the same as the discount rate used in determining net present value.

Name: If the net present value is zero, the internal rate of return will be the same as the discount rate used in determining net present value.
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Quizplus · Accepted Answer

When the net present value (NPV) is zero, it means that the project's cash flows, when discounted at the internal rate of return (IRR), exactly equal the initial investment, making the IRR equal to the discount rate used.

If the Net Present Value Is Zero, the Internal Rate