Fisher's Rate of Intersection

B

The answer to the question is C. IRRs.

Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments. The IRR is the discount rate at which the net present value (NPV) of cash flows from an investment equals zero. It is a discount rate that makes the present value of cash inflows equal to the initial investment. The IRR assumes that cash flows from an investment are reinvested at the same rate as the IRR.

Fisher's rate of intersection is a concept used to evaluate and compare two investment projects. When comparing two projects with different cash flow patterns and life spans, the IRR can be used to find the discount rate at which the net present values of the projects are equal. This rate is known as Fisher's rate of intersection. It is the point at which the net present values of the two projects cross each other.

To determine the Fisher's rate of intersection, you need to calculate the IRR of each project and then compare them. The IRR that makes the NPV of both projects equal is the Fisher's rate of intersection. Therefore, the answer to the question is C. IRRs.