Which of the Following Best Describes the Internal Rate-Of-Return (IRR)

Multiple Choice

Which of the following best describes the internal rate-of-return (IRR) method?

A) it calculates the discount rate at which an investment's present value of the total of all expected cash inflows equals the present value of its expected cash outflows.
B) it calculates the discount rate at which an investment's future value of all expected cash inflows equals the present value of its expected cash outflows.
C) it calculates the discount rate at which an investment's total of all expected cash inflows equals the present value of its expected cash outflows.
D) it calculates the discount rate at which sum of an investment's present value of all expected cash inflows equals the present value of its expected cash outflows.