The Internal Rate of Return Is Defined as The

Multiple Choice

The internal rate of return is defined as the:

A) maximum rate of return a firm expects to earn on a project.
B) rate of return a project will generate if the project in financed solely with internal funds.
C) discount rate that equates the net cash inflows of a project to zero.
D) discount rate which causes the net present value of a project to equal zero.
E) discount rate that causes the profitability index for a project to equal zero.