Conceptually, what is the internal rate of return?

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the discount rate that makes the net present value of a project's cash inflows equal to the net present value of its cash outflows. It is a measure of the profitability of an investment and is often used to compare different investment opportunities. Option A is referring to the payback period, option C is referring to the cost of capital, and option D is referring to the return on investment (ROI).

Conceptually, What Is the Internal Rate of Return