Q461
A point where profile of net present value crosses horizontal axis at plotted graph indicates project
A.
costs
B.
cash flows
C.
internal rate of return
AnswerD.
external rate of return
Answer: Option C
Solution
Answer: Option C
Solution:
A point where profile of net present value crosses horizontal axis at plotted graph indicates project internal rate of return. The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.