(4) Moving to another question will save this response. destion 6 The internal rate of return is defined as the: Average annual rate of return on a project. Average annual rate of return divided by the average book value of a project's fixed assets. Rate of return which a cost-cutting, non-revenue generating project returns in an average year. Rate of return which causes the net present value of a project to equal zero. Rate of return which yields a net present value equal to the initial investment in a project