Asked by
Emily Maldonado
on Oct 20, 2024
Verified
The rate that yields a net present value of zero for an investment is the:
A) Internal rate of return.
B) Accounting rate of return.
C) Net present value rate of return.
D) Zero rate of return.
E) Payback rate of return.
Internal Rate
Often referred to as the Internal Rate of Return (IRR), it is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.
- Acquire insight into the importance of the internal rate of return (IRR) and how it impacts investment decision-making.
Verified Answer
AC
Learning Objectives
- Acquire insight into the importance of the internal rate of return (IRR) and how it impacts investment decision-making.