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Chapter 10 mini cased. (1) Define the term internal rate of return (IRR). What is each franchise’s IRR?IRR is the discount rate that forces the PV of the inflows to equal the initial cost. The IRR is an estimate of the project’s rate of return, and it is comparable to the YTM on a bond.Year (t)Franchise SFranchise L0($100)($100)170102506032080IrrS= IRR( -100, 70, 50, 20) = 23.56%IrrL= IRR(-100, 10, 60, 80) = 18.13%(2) How is the IRR on a project related to the YTM on a bond?(3) What is the logic behind the IRR method? According to IRR, which franchises