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A graph of the firm’s investment opportunities ranked in order of the projects’: a. discounted payback...

A graph of the firm’s investment opportunities ranked in order of the projects’: a. discounted payback b. internal rate of return c. net present value d. payback Answer?

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A graph of the firm’s investment opportunities ranked in order of the projects internal rate of return.

Answer: Internal Rate of Return

Internal Rate of Return (IRR) is the rate of interest that makes the sum of all cash flows zero and is useful to compare one investment to another. The internal rate of return on an investment or project is the "annualized effective compounded return rate. It is used in capital budgeting to estimate the profitability of potential investments.

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