When the IRR is equal to the discount rate,the NPV is:

Question

Quizplus · Accepted Answer

When the IRR is equal to the discount rate, the NPV is equal to zero. This is because the IRR represents the rate of return at which the project's cash inflows equal its outflows, and the discount rate represents the rate at which future cash flows are discounted to their present value. If the IRR is equal to the discount rate, it means that the cash inflows are exactly equal to the present value of the cash outflows, resulting in an NPV of zero.

When the IRR Is Equal to the Discount Rate,the NPV