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Which of the following is true about the relationship between Net Present Value (NPV) and Internal...

  1. Which of the following is true about the relationship between Net Present Value (NPV) and Internal Rate of Return (IRR):
  1. NPV calculates outflows and inflows over a period of time discounted based on a selected rate, unique to each developer.

  1. IRR represents the discount rate at which NPV = 0.

  1. IRR may be thought of as interest compounded backwards over a period of time.

  1. After our team development presentation, I never, ever want to hear about NPV or IRR again!

  1. All of the above.
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Answer #1

Answer: Option b is correct
Internal rate of return or IRR represents the discount rate at which NPV = 0

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