Which of the following is the discount rate that equates the net present value of a series of cash flows to zero?

Question

Quizplus · Accepted Answer

The discount rate that equates the net present value of a series of cash flows to zero is called the internal rate of return (IRR). Choice A, investment rate of return, refers to the total return on an investment, while choice B, external rate of return, is not a commonly used finance term. Choice D, international rate of return, does not exist as a standard finance term.

Which of the Following Is the Discount Rate That Equates