The IRR is the discount rate that produces a zero NPV or the specific
The IRR is the discount rate that produces a zero NPV or the specific discount rate at which the present value of the cost equals ________.
A) the future value of the present cash outflows
B) the present value of the future benefits or cash inflows
C) the present value of the cash outflow
D) the investment
ANSWER
Answer: B
Explanation: B) The IRR is defined as the discount rate that produces a zero NPV or the specific discount rate at which the present value of the cost (the investment or cash outflows) equals the present value of the future benefits.
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