# Internal rate of return

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The internal rate of return is:

Answer

the discount rate that makes the NPV positive.

the discount rate that equates the present value of the cash inflows with the present value of the cash outflows.

the discount rate that makes NPV negative.

the rate of return that makes the NPV positive.

One disadvantage of the NPV method is that:

Answer

the NPV deals with cash flows.

the NPV gives equal regard to all returns within a project's life.

the NPV will always give the same project accept/reject decision as the IRR.

the NPV requires long, detailed cash flow forecasts.

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he internal rate of return is:

Answer

the discount rate that equates the present value ...

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