The internal rate of return (IRR) is that discount rate that equates the present value of the cash outflows (or costs) with the

Question

goldfiish [28.3K]

2 years ago

7

The internal rate of return (IRR) is that discount rate that equates the present value of the cash outflows (or costs) with the

present value of the cash inflows, or in other words, where the NPV is exactly zero.True Or False ?

Business

1 answer:

astra-53 [7] · Answer 1 · 2022-08-07T18:50:41+03:00

Answer:

True

Explanation:

The internal rate of return is a measurement utilised in capital planning to appraise the productivity of potential investment. The internal rate of return is a markdown rate that makes the net present worth of all incomes from a specific task equivalent to zero. If the NPV is zero the project is not feasible and if the NPV is zero or positive the investor should invest in that particular project