What is Internal rate of return in terms of present value method?

Question

What is Internal rate of return in terms of present value method?

Answer 1

The rate of return that gives you a present value of zero

Answer 2

The cost of capital at which net present value is zero.

Answer 3

The present value method involves aggregation of flows over different periods after discounting the value of each period's flow by a discount rate or an interest rate. Depending on the rate of discount, the Present value will be high or low , positive, negative or zero.

The Internal Rate of return is that discount rate at which the Present Value becomes zero.