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the internal rate of return is the rate of return of an investment project over its useful life. group startstrue or false true, unselected false, unselected

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True, The rate of return on an investment project throughout the course of its useful life is known as the internal rate of return.

What is the internal rate of return?

The internal rate of return is the discount rate that compares the present value of cash inflows to the present value of cash outflows (or costs). A project may have more than one IRR under specific circumstances.

When does internal rate of return factor into the ranking of investment proposals?

A net present value that is higher than 0. The rate of return on an investment project throughout the course of its useful life is known as the internal rate of return. Higher internal rates of return indicate more desirable investments when ranking investment ideas using the internal rate of return approach.

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