A sophisticated capital budgeting technique that can be computed by solving for the discount rate that equates the present value of a projects inflows with the present value of its outflows is called internal rate of return.

Question

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This statement accurately describes the internal rate of return (IRR) as a capital budgeting technique. The IRR is the discount rate at which the present value of a project's cash inflows equals the present value of its cash outflows. It is a sophisticated technique because it takes into account the time value of money and considers all of the project's cash flows, not just the initial investment and final payoff.

A Sophisticated Capital Budgeting Technique That Can Be Computed by Solving