Answer:
the internal rate of return is 12%
Step-by-step explanation:
The computation of the internal rate of return is shown below:
Year Particulars Amount
0 Initial cost -$4,803.6 (C2)
1 Year 1 cash inflows $2,000 (C3)
2 Year 2 cash inflows $2,000 (C4)
3 Year 3 cash inflows $2,000 (C5)
IRR 12.00%
Use this below formula
=IRR(C2:C5)
Hence, the internal rate of return is 12%