# The internal rate of return of a project

The internal rate of return of a project can be found

a. by discounting all cash flows at the cost of capital.

b. by averaging all cash inflows, and calculating the interest rate, which will make them equal to the average investment.

c. by calculating the interest rate, which will equate the present value of all cash inflows to the present value of all cash outflows.

d. none of the above.

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#### Solution Summary

The internal rate of return of a project is examined.

$2.19