- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 5. Capital Investments and Capital Allocation
- Subject 2. Capital Allocation
CFA Practice Question
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
Correct Answer: A
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