The internal rate of return is the rate of interest that makes the present value of a project's cash inflows:

A) greater than the present value of its cash outflows.
B) less than the present value of its cash outflows.
C) equal to the present value of its cash outflows.
D) None of the above

Internal Rate

NO. However, closely related term Internal Rate of Return (IRR) is a metric used in financial analysis to estimate the profitability of potential investments.

Present Value

The value today of a sum promised at a specified time in the future given a rate of interest. The amount that would have to be deposited today at the specified interest rate to grow into the promised sum on the specified date.

Cash Inflows

Money or funds coming into a business from various sources, including sales, investments, financing, and operational activities.