Whenever the internal rate of return on a project equals that project's required rate of return,the net present value equals zero.

Question

Quizplus · Accepted Answer

This statement is true. The internal rate of return (IRR) is the discount rate at which the net present value (NPV) of cash inflows from a project equals the NPV of cash outflows. If the IRR equals the required rate of return, then the NPV will be zero, since the present value of cash inflows equals the present value of cash outflows.

Whenever the Internal Rate of Return on a Project Equals