Internal rate of return: What is the internal rate of return on this project? (Round to the nearest percent.)

Question

Quizplus · Accepted Answer

The internal rate of return (IRR) is the rate at which the project's discounted cash inflows equal its discounted cash outflows. Using a financial calculator or spreadsheet function, the IRR for this project is 20%, which is the highest option given. Therefore, choice D is the best answer.

Internal Rate of Return: What Is the Internal Rate of Return