The internal rate of return equates the present value of a project's cash inflows with the present value of the cash outflows.

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is a financial metric used to evaluate the profitability of an investment or project, calculated as the discount rate that makes the net present value (NPV) of all cash flows (both inflow and outflow) from the project equal to zero.

The Internal Rate of Return Equates the Present Value of a Project's