Internal Rate of Return (IRR) is best defined as t...

CPA BAR Practice Questions - AICPA CPA Exam - Business Analysis & Reporting (BAR) Discipline Section Exam

Question Number 5

Internal Rate of Return (IRR) is best defined as the discount rate at which:

NPV equals zero Payback period is minimized Profitability index equals 1.0 plus the cost of capital Accounting rate of return equals the hurdle rate

✔ Correct Answer:

NPV equals zero

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