A capital budgeting project's internal rate of return is the rate of return causing a project's net present value to equal the net investment.

Name: A capital budgeting project's internal rate of return is the rate of return causing a project's net present value to equal the net investment.
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The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero, not equal to the net investment.

A Capital Budgeting Project's Internal Rate of Return Is the Rate