With the internal rate of return method,the required rate of return of an entity is normally

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of a project equal to zero. Therefore, in order to calculate IRR, we need to know the cost of capital, which reflects the required rate of return for that entity. Hence, the required rate of return used in IRR method is typically the entity's cost of capital.

With the Internal Rate of Return Method,the Required Rate of Return