The IRR that causes the net present value of the differences between two project's cash flows to equal zero is called the:

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The question asks about a specific IRR concept: the rate at which the net present value (NPV) of the differences between two project's cash flows equals zero.
Option 1: 'required return.' This is the minimum return investors expect on an investment, not the rate that zeros the NPV of differences between two projects. It is a benchmark, not the crossover point.
Option 2: 'zero-sum rate.' This phrasing is not standard in capital budgeting or IRR terminology. It does not describe the rate where NPV differences vanish.
Option 3: 'present value rate.' While IRR involves discounting cash flows to present value, this term is not a recognized label for the rate that equates the NPV of differences to zero between two projects.
Option 4: 'break-even rate.' Although intuitively similar, this term is not the conventional name for the rate at which the NPV of the differences between two projects is zero; it misleads by implying a simple break-even on cash flows rather than the crossover concept.
Option 5: 'crossover rate.' This is the standard term in capital budgeting for the discount rate at which the NPVs of two projects are equal, i.e., the NPV of the differences between their cash flows equals zero. It marks the point where one project becomes preferable to the other depending on the discount rate.
In summary, among the given choices, the only option that correctly names the rate where the NPVs of the two projects cross (NPV differences equal zero) is the crossover rate.

The IRR that causes the net present value of the differences between two project's cash flows to equal zero is called the:

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