Question

1. What is the IRR of the following set of cash flows? PLEASE SHOW ANSWER USING FINANCIAL CALCULATOR WITH ALL STEPS, THANK YOU!

Year	Cash Flow
0	-4,000
1	1,500
2	2,100
3	2,900

Answer 1

This can be calculated using a financial calculator by inputting the below:

• Press the CF button.
• CF0= -$4,000. It is entered with a negative sign since it is a cash outflow.
• Cash flow for each year should be entered.
• Press Enter and down arrow after inputting each cash flow.
• After entering the last cash flow cash flow, press the IRR button and enter the interest rate to get the IRR of the project.

The IRR is 25.43%.

In case of a query, kindly comment on the solution.