Internal Rate of Return:

Internal rate of return is a measure of a project's profitability. It is equivalent to the discount rate at which the net present value of the project is zero. Therefore the internal rate of return is also the break-even rate of return on the project. A project is acceptable only if the internal rate of return is higher than the required rate of return.

Suppose the internal monthly rate of return on the project is R. This is the rate at which the net present value of the project is...

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