The internal rate of return (IRR) can best be described as: A. the discount rate at which a set of cash flows have a zero net present value B. the discount rate at which a set of cash flows have a positive net present value c. the rate which the business has to pay to raise finance for an investment D. the return required by the managers of the business

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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7. The internal rate of return (IRR) can best be
described as:
A. the discount rate at which a set of cash flows have a
zero net present value
B. the discount rate at which a set of cash flows have a
positive net present value
c. the rate which the business has to pay to raise finance
for an investment
the return required by the managers of the business
D.
Transcribed Image Text:7. The internal rate of return (IRR) can best be described as: A. the discount rate at which a set of cash flows have a zero net present value B. the discount rate at which a set of cash flows have a positive net present value c. the rate which the business has to pay to raise finance for an investment the return required by the managers of the business D.
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