Conceptually,what is the internal rate of return?

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a financial metric used to calculate the profitability of an investment. It is the discount rate that equates the present value of cash inflows to the present value of cash outflows. In other words, it is the rate at which the net present value of an investment becomes zero. The higher the IRR, the more profitable the investment. Choice A is the payback period, not the IRR. Choice C refers to the yield on corporate bonds and preferred stock, not the IRR. Choice D refers to the return on investment, not the IRR.

Conceptually,what Is the Internal Rate of Return