The rate of interest at which a project's NPV is exactly zero is called its:
A) equilibrium rate.
B) internal rate of return.
C) break-even rate.
D) zero net rate.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the rate at which the project's NPV is equal to zero. It is also known as the break-even rate or the equilibrium rate. Therefore, the correct answer is B.

The Rate of Interest at Which a Project's NPV Is