The Internal Rate of Return for an Investment Project Is

Multiple Choice

The internal rate of return for an investment project is best defined as the:

A) discount rate that causes the net present value to equal zero.
B) difference between the market rate of interest and the discount rate.
C) market rate of interest less the risk-free rate.
D) minimum project acceptance rate set by management.
E) maximum rate that can be earned for a project to be accepted.