Question
The point at which the NPV profile crosses the vertical axis is the:
Multiple choice question.
internal rate of return
sum of the cash flows of the project
cost of the project in the first year
required rate of return
Multiple choice question.
internal rate of return
sum of the cash flows of the project
cost of the project in the first year
required rate of return
Answers
GPT-4o mini
The point at which the NPV profile crosses the vertical axis is the **internal rate of return (IRR)**.
This is because the vertical axis of an NPV profile represents the NPV value, and at the IRR, the NPV equals zero.
This is because the vertical axis of an NPV profile represents the NPV value, and at the IRR, the NPV equals zero.
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