Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
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Answer:
A. internal rate of return.
Explanation:
Net present value method: In this method, the initial investment is deducted from the cash inflows of the discounted present value. If the sum comes under positive than the project would otherwise not be beneficial to the company.
The internal rate of return is that return in which the net present value is zero, meaning that the initial investment is equal to the present value of the annual cash flows after taking into account the discount factor
Moreover, the IRR could be in multiples also i.e multiple IRR.
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