Internal rate of return (IRR) is the method used to:

Select one:

a. rank net present values. Net present values are ranked from the highest to the lowest rate of internal return using cash flows.

b. evaluate long-term investments. It is defined as the rate required to get a net present value of zero for a series of cash flows.

c. rank long-term investments. Investments are ranked from the highest to the lowest rate of internal return using net present value for cash flows.

d. evaluate the net present value of different management actions. It is the rate required to get a maxim net present value for a series of cash flows.