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The discount rate that makes NPV equal to zero is known as  
  • a)
    Benefit-cost ratio
  • b)
    Internal rate of return
  • c)
    Discounted pay-back period
  • d)
    Profitability index
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
The discount rate that makes NPV equal to zero is known asa)Benefit-co...
The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments. The internal rate of return is a discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.
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The discount rate that makes NPV equal to zero is known asa)Benefit-cost ratiob)Internal rate of returnc)Discounted pay-back periodd)Profitability indexCorrect answer is option 'B'. Can you explain this answer?
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