The internal rate of return is the: discount rate that causes a project's aftertax income to equal zero. discount rate that results in a zero net present value for the project. discount rate that results in a net present value equal to the project's initial cost. rate of return required by the project's investors. project's current market rate of return.

Question

Villarreal

Business

28 June, 16:50

The internal rate of return is the: discount rate that causes a project's aftertax income to equal zero. discount rate that results in a zero net present value for the project. discount rate that results in a net present value equal to the project's initial cost. rate of return required by the project's investors. project's current market rate of return.

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Elmo · Answer 1

The IRR is the discount rate that results in a zero net present value for the project

Explanation:

discount rate that results in a zero net present value for the project

This means the IRR is the maximun yield of a project, a rate below IRR will create a positive NPV

and a rate above the IRR will do a negative NPV