Answer:
Discount rate
YTM
Explanation:
Here is the full question :
A project's internal rate of return (IRR) is the
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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
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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
