A point where profile of net present value crosses horizontal axis at plotted graph indicates project

The correct answer is: C. internal rate of return (IRR).

The internal rate of return (IRR) is the rate of return that makes the net present value (NPV) of a project equal to zero. It is a measure of the profitability of a project. The IRR can be calculated using a financial calculator or by trial and error.

The point where the NPV profile crosses the horizontal axis at a plotted graph indicates the IRR of the project. This is because the NPV is zero at the IRR.

The other options are incorrect because:

• A. costs are the expenses that are incurred in order to complete a project.
• B. cash flows are the inflows and outflows of cash that occur during the life of a project.
• D. external rate of return is the rate of return that a project must earn in order to satisfy the requirements of its investors.