Which of the Following Statements About the Internal Rate of Return

Multiple Choice

Which of the following statements about the internal rate of return method is false?

A) The internal rate of return is equal to the required rate of return when the net present value is equal to zero.
B) The internal rate of return is greater than the required rate of return when the net present value is negative.
C) The internal rate of return represents the expected rate of return on a project.
D) The internal rate of return is the discount rate that forces the present value of a project's inflows to equal its outflows.