Chapter 12, Problem 12Q

To determine

The internal rate of return method:

The internal rate of return method is one of the capital investment methods which determine the rate of return wherein the net present value of all the cash flows (both positive and negative) from an investment is zero. This method also called as the time-adjusted rate of return method, and it used to evaluate the different proposal’s expected rate of return.

To identify: The steps required to compute the internal rate of return.