The correct answer is: A. negative internal rate of return.
The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of a project equal to zero. If the IRR is greater than the project’s cost of capital, then the project is considered to be profitable. If the IRR is less than the project’s cost of capital, then the project is considered to be unprofitable.
A negative IRR means that the project’s NPV is negative, which means that the project is not profitable. This is because the present value of the project’s future cash flows is less than the project’s cost.
The other options are incorrect because they do not accurately describe the discount rate that equals to present value of TV to project cost present value.
- Option B, modified internal rate of return, is a modified version of the IRR that takes into account the project’s risk.
- Option C, existed internal rate of return, is not a valid term.
- Option D, relative rate of return, is a measure of the profitability of a project relative to other projects.