A Project's IRR Is the Interest Rate That

question 70

Multiple Choice

A project's IRR is the interest rate that

• A) causes the project's NPV to equal zero.
• B) is used to discount cash flows when computing the project's NPV.
• C) is used to determine which one of two mutually exclusive projects should be accepted.
• D) is used to compute the project's discounted payback period.

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