Choice "D" is correct. The internal rate of return (IRR) focuses the decision maker on the discount rate at which the present value of a project's cash inflows equals the present value of the cash outflows. The IRR is the rate used to arrive at a net present value of zero.
Choice "c" is incorrect. Net present value is the difference in the amount of an investment and its related discounted cash inflows. Although the values are compared, they are not expected to be equal. They do not equate.
Choice "b" is incorrect. Return on assets (ROA) is the product of gross margin and asset turnover. The ROA does not equate the investment with discounted cash inflows.
Choice "a" is incorrect. Economic value added is a residual income measure that compares income with required return on investment. Positive amounts indicate objectives have been met, negative amounts indicate that objectives have not been met. The method does not equate investment cash outflows and cash inflows.