Which of the following best describes the internal rate of return? OA. interest rate that makes the net present value of the investment equal to zero B. discount rate that is used to evaluate funds borrowed from a lender for profitability O C. the rate at which the profitability of an investment increases O D. the ratio of average annual income to average amount invested The following details are provided by Beckett Company: $2,020,000 Initial investment Discount rate 12% Yearly cash inflows $786,000 $678,000 $678,000 1 2 3 4 $678,000 $786,000 5 Present Value of $1: 10% 11% 12% 13% OA. $959,500 OB. $1,015,050 OC. $581,870 D. $252,500 $678,000 $678,000 $786,000 3 4 5 Present Value of $1: 10% 11% 12% 13% 0.909 1 0.901 0.893 0.885 0.826 0.812 0.797 0.783 0.751 0.731 0.712 0.693 0.683 4 0.659 0.636 0.613 0.621 0.593 0.567 0.543 Calculate the NPV of the project A. $959,500 B. $1,015,050 O C. $581,870 O D. $252,500 23 5