The internal rate of return (IRR) is such a discount rate that ensures the sum of...

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The internal rate of return (IRR) is such a discount rate that ensures the sum of...

The internal rate of return (IRR) is such a discount rate that ensures the sum of present value of the cash outflows (or costs) with the sum of future value of the cash inflows True or False

business finance

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Answer 1

Answer #1

This is a true statement.

If the discount rate is equal to IRR, then the sum of present values of cash out flows is equal to the sum of present values of cash in flows.

So above statement is TRUE

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Answer 2

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