Economics · Capital Budgeting

Which discount rate equates the present value of expected cash inflows with the present value of cash outflows of an investment project?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Accounting Rate of Return
2Payback Period Rate
3Internal Rate of Return✓
4Net Present Value

Correct answer

Internal Rate of Return

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Which discount rate equates the present value of expected cash inflows with the present value of cash outflows of an investment project?

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Which discount rate equates the present value of expected cash inflows with the present value of cash outflows of an investment project?

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