True, The internal rate of return is the correct method to use when an investor wants to determine an investment's average annual yield.
An investment is an associated asset or item noninheritable with the goal of generating financial gain or appreciation. Appreciation refers to a rise in the worth of a plus over time. once a private purchases a decent as an investment, the intent isn't to consume the great but rather to use it in the future to form wealth.
An investment invariably issues the outlay of some resource today—time, effort, money, or an asset—in hopes of a larger payoff in the future than what was originally placed in. For example, a capitalist could purchase a financial asset currently with the concept that the asset can offer income in the future or can later be sold out at the next price for a profit.
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