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The internal rate of return is the discount rate at which the cash flows from a project are equal to the expected first year's profit

The internal rate of return is

the discount rate at which the cash flows from a project are equal to the expected first year's profit

the discount rate which is most affordable to the consumer

the discount rate at which the cash inflows equal the cash outflows (NPV = 0), discounted to year 0

the rate of return required to give the investor a luxurious retirement

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