Question

The internal rate of return is that discount rate that equates the present value of the cash outflows (or costs) with the present value of the cash inflows. True or False

Answer 1

Answer:

True

Explanation:

The internal rate of return defines that return in which the net present value is zero that means the initial investment is equivalent to the present value of the yearly cash flows after considering the discounting factor

In other words we can say that the net present value is zero

Hence, the given statement is true