The investor's internal rate of return is always equal to the firm's rate of return on equity.

Question

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The investor's internal rate of return (IRR) is the rate at which the net present value of cash flows from an investment equals zero. It is determined by the cash flows received by the investor and the time at which they are received. The firm's rate of return on equity, on the other hand, is a measure of the return generated by the company for its shareholders. While the two measures may be related, they are not always equal, as the IRR is specific to the investor's individual investment, while the firm's return on equity is a more general measure of the company's performance.

The Investor's Internal Rate of Return Is Always Equal to the Firm's