A discount rate which equals to present value of TV to project cost present value is classified as
A
negative internal rate of return
B
modified internal rate of return
C
existed internal rate of return
D
relative rate of return
Correct Answer: modified internal rate of return
A discount rate which equals to present value of TV to project cost present value is classified as modified internal rate of return. The internal rate of return (IRR) is a metric used in capital budgeting to estimate the profitability of potential investments.