Internal rate of return : Internal return rate (IRR) can be defined as a tool that helps in the process of capital budgeting to estimate the profitability of all potential investments. The internal rate is the discount rate that makes the net present value of the cash flows from a project equivalent to zero. To determine: The net present value and whether the investment must be made.

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Chapter 26, Problem 26.12BE

To determine

Internal rate of return:

Internal return rate (IRR) can be defined as a tool that helps in the process of capital budgeting to estimate the profitability of all potential investments. The internal rate is the discount rate that makes the net present value of the cash flows from a project equivalent to zero.

To determine: The net present value and whether the investment must be made.

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