The rate of interest at which a project's NPV is exactly zero is called its
A) Equilibrium rate
B) Internal rate of return
C) Break-even rate
D) Zero net rate

Question

Quizplus · Accepted Answer

The internal rate of return is the discount rate that makes the net present value of a project equal to zero. It represents the rate of return that can be earned on the project, and is often used as a measure of the project's potential profitability. The other options are not commonly used financial terms in relation to project analysis.

The Rate of Interest at Which a Project's NPV Is