Problem:
Chasteen, Inc. is considering an investment with an initial cost of $185,000 that would be depreciated straight-line to a zero book value over the life of the project. The cash inflows generated by the project are estimated at $76,000 for the first two years and $30,000 for the following two years.
Required:
Question: What is the internal rate of return?
Note: Please explain comprehensively and give step by step solution.