What Is True Concerning the Internal Rate of Return (IRR)method

question 62

Multiple Choice

What is true concerning the internal rate of return (IRR) method?

• A)The IRR method determines the discount rate that equates the net present value of the series to the initial investment.
• B)The IRR method determines the discount rate that equates the net present value of the series to hurdle rate.
• C)The IRR method determines the discount rate that equates the net present value of the series to cut-off rate.
• D)The IRR method determines the discount rate that equates the net present value of the series to zero.

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