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
D
external rate of return
Correct Answer: internal rate of return
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.