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Basic Question 13 of 29
The IRR is defined as the ______.
B. difference between the cost of capital and the present value of the cash flows
C. discount rate used in the NPV method
A. discount rate that makes the NPV equal to zero
B. difference between the cost of capital and the present value of the cash flows
C. discount rate used in the NPV method
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Tamara Schultz
Learning Outcome Statements
describe the capital allocation process, calculate net present value (NPV), internal rate of return (IRR), and return on invested capital (ROIC), and contrast their use in capital allocation
CFA® 2025 Level I Curriculum, Volume 2, Module 5.