The internal rate of return is that discount rate at which answer the future wor
ID: 2734095 • Letter: T
Question
The internal rate of return is that discount rate at which
answer
the future worth of present cash flows is exactly equal to the initial cash investment.
the present value of future cash flows is larger than the initial cash investment.
the future worth of cash flows is larger than the initial cash investment.
the net present value of future cash flows is exactly equal to zero.
A.the future worth of present cash flows is exactly equal to the initial cash investment.
B.the present value of future cash flows is larger than the initial cash investment.
C.the future worth of cash flows is larger than the initial cash investment.
D.the net present value of future cash flows is exactly equal to zero.
Explanation / Answer
The internal rate of return is that discount rate at which
Answer D) the net present value of future cash flows is exactly equal to zero.