What is the internal rate of return?
A) The discount rate at which the present value of expected cash inflows and outflows is equal.
B) The discount rate that makes the net present value of the cash flows equal zero.
C) The discount rate at which the present value of expected cash inflows and outflows is equal AND the discount rate that makes the net present value of the cash flows equal zero.
D) The present value factor used to discount cash flows.
Correct Answer:
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