GENERAL KNOWLEDGE

Detailed explanation-1: -The internal rate of return method is also a modern technique of capital budgeting that takes into account the time value of money. It is also known as ‘time adjusted rate of return’ discounted cash flow’ ‘discounted rate of return, ‘ ‘yield method, ‘ and ‘trial and error yield method’.

Detailed explanation-2: -Answer :-Internal rate of return method is also known as time adjusted rate of return.

Detailed explanation-3: -The Net Present Value (NPV) method involves discounting a stream of future cash ows back to present value. The cash ows can be either positive (cash received) or negative (cash paid). The present value of the initial investment is its full face value because the investment is made at the beginning of the time period.

Detailed explanation-4: -Time-Adjusted or Discounted Cash Flow Methods: Time-adjusted methods take into account the profitability and also the time value of money unlike in the traditional methods. These methods are popular in the modern days and also known as discounted cash flow methods.

Detailed explanation-5: –The internal rate of return method, also known as the time-adjusted rate of return method or the discounted rate of return method, is similar to the net present value approach in that it emphasizes the profitability of investments and takes into account the time value of money.