Choice "A" is correct. The internal rate of return is one of many capital budgeting techniques that utilize present value concepts to value both the investment and the related cash flows. These methods are generally referred to as using a time-adjusted rate of return.
Choice "b" is incorrect. Although the internal rate of return is the rate that yields a net present value of zero; the internal rate of return is not a net present value.
Choice "d" is incorrect. The accounting rate of return uses GAAP basis income to determine rate of return; it is not synonymous with internal rate of return.
Choice "c" is incorrect. The internal rate of return is not synonymous with the payback period of an investment. Payback measures return of capital in years on either a discounted or undiscounted basis.