that forces the PV of its inflows to equal its cost. The IRR is an estimate of the project's rate of return, and it is comparable to the

Discount rate

YTM

Explanation:

Here is the full question :

A project's internal rate of return (IRR) is the

-Select-

compound rate

discount rate

risk-free rate

that forces the PV of its inflows to equal its cost. The IRR is an estimate of the project's rate of return, and it is comparable to the

-Select-

YTM

coupon

gain

on a bond.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

A project should be chosen if it's IRR is greater than the discount rate.

Internal rate of return is one of the capital budgeting methods. Other methods are :

1. Net present value

2. Profitability index

3. Pay back method

4. Discounted pay back method

5. Accounting rate of return

drop shippers;

b is the correct answer