Asked by Ailis Galdo on Jun 30, 2024

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The internal rate of return is computed by finding the discount rate that equates the present value of a project's cash outflows with the present value of its cash inflows.

Discount Rate

The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.

Cash Outflows

Financial transactions representing money leaving a business, such as payments for expenses, investments, and loans.

Cash Inflows

Money or assets entering a business from various sources, including sales, investments, financing, and more.

  • Gain insight into the idea of the internal rate of return (IRR) and the technique used to calculate it in the context of investment ventures.
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ZK
Zybrea KnightJul 04, 2024
Final Answer :
True
Explanation :
This is the correct definition of internal rate of return.