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5. The internal rate of return is the a. rate of return o. rate computed by discounting the cash inflows and d. needed for a
5. The internal rate of return is the a. rate of return o. rate computed by discounting the cash inflows and d. needed for a project to payback within the allotted time period. dividing by the initial cost. rate of return required by a firm's mantveofa ject to equal ao of a project nt for a particular project. discount rate that causes the net present value of a project to equal zero.ofa project. project. e. r e computed by dividing the first year's cash inflows by the initial cost 6. Net present value is: a. equal to the initial investment in a project. b. equal to the present value of an investment's benefits. c. equal to zero when the discount rate used is the IRR d. simplified by the fact that future cash flows are easy to estimate e. equal to 1.0 when the discount rate and the IRR are equal
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