The "rate of return that makes the NPV of a capital project equal to zero" is best described by which of the following terms?

Question

Quizplus · Accepted Answer

The description given refers to the concept of internal rate of return (IRR), which is the discount rate that makes the net present value (NPV) of a project equal to zero. The IRR is a measure of the project's profitability and represents the expected rate of return that the project will generate over its lifetime. The other options are not accurate descriptions of the concept described.

The "Rate of Return That Makes the NPV of a Capital