Economics · Financial Economics

Internal Rate of Return (IRR) is defined as:

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1the difference between the social discount rate and the private discount rate.
2the discount rate at which future cash flows are infinite.
3the interest rate at which gross total revenue is zero.
4the discount rate at which the net present value (NPV) of a project is zero.✓

Correct answer

the discount rate at which the net present value (NPV) of a project is zero.

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