Question

Discounting rate which equates the present value of cash inflow with the present value of cash outflows is called

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Answer 1

Answer:

Internal Rate of Return

NPV is the difference between the present value of cash inflows and the present value of cash outflows. Internal Rate of Return (IRR) on the other hand, is the discount rate that equates the present value of cash inflows with the present values of cash outflows. IRR is calculated by assuming that NPV is equal to zero.