When calculating IRR,the projected cash flows are discounted such that they will equal the initial investment amount.

Question

Quizplus · Accepted Answer

The Internal Rate of Return (IRR) is calculated by finding the discount rate that makes the net present value (NPV) of all cash flows (both positive and negative) from a particular investment equal to zero. This involves discounting projected cash flows to the point where they equal the initial investment amount.

When Calculating IRR,the Projected Cash Flows Are Discounted Such That