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Internal Rate Of Return

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1

The internal rate of return (IRR) of a project is the discount rate at which:

A.Net present value equals zero
B.Revenue equals cost of goods
C.Profit is maximized
D.Cash flow is highest
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2

Internal rate of return is the discount rate that makes NPV equal to what?

A.Zero
B.One
C.The tax rate
D.The loan principal
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