Asked by Chantal Barry on Jun 30, 2024
Verified
The internal rate of return is the rate of return of an investment project over its useful life.
Useful Life
The estimated period over which an asset is expected to be usable by an organization, affecting its depreciation calculation.
- Understand the concept of the internal rate of return (IRR) and how it is calculated for investment projects.
Verified Answer
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Fatima BashirJul 05, 2024
Final Answer :
True
Explanation :
The internal rate of return (IRR) is indeed the rate of return that makes the net present value of all cash flows from a project equal to zero, over its useful life. It is one of the most commonly used financial metrics to evaluate investment opportunities.
Learning Objectives
- Understand the concept of the internal rate of return (IRR) and how it is calculated for investment projects.