Question

Which method of evaluating capital investment proposals uses present value concepts to compute the rate of return from the net cash flows

Answer 1

Internal rate of return

Step-by-step explanation:

The internal rate of return is that return in which the net present value equivalent to zero

i.e.

Net present value = 0

That means

Initial investment = Present value of cash inflows after charging the discounting factor like 10% 12% etc

So as per the given situation, the internal rate of return is the correct answer