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    Question

    Internal rate of return (IRR) is the ________ rate at

    which the net present value of the cash flows from a project is _______.
    A Return rate, less than one Correct Answer Incorrect Answer
    B Discount rate, more than one Correct Answer Incorrect Answer
    C Discount rate, zero Correct Answer Incorrect Answer
    D Discount rate, less than one Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    The internal rate of return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments. IRR is a discount rate that makes the net present value (NPV) of all cash flows equal to zero in a discounted cash flow analysis.

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