Question

Check My Work 11-3: Internal Rate of Return (IRR) IRR Project K costs $55,939.28, its expected cash inflows are $13,000 per year for 9 years, and its WACC is 11%, what is the projects IRR? Round your answer to two decimal places. 0
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Answer #1

In order to calculate the IRR of a project, one shall use excel to get an accurate and correct figure:

Year Cash flow
0 $ (55,939.28)
1 $   13,000.00
2 $   13,000.00
3 $   13,000.00
4 $   13,000.00
5 $   13,000.00
6 $   13,000.00
7 $   13,000.00
8 $   13,000.00
9 $   13,000.00
IRR 18.00%

This project shall have a single IRR because there is only one negative cash flow at the beginning.

Book1 - Excel Imran Khan File Home Insert Page Layout Formulas Revie View Add-ins HelpTell me what you want to do Share Comments Σ AutoSum . A ドA Percentage Copy Paste Conditional Format as Cell Formatting Table Styles nsert Delete Format Sort & Find & ヴFormat Painter | B 1 u.1E- 2-△ ClearFilter Select Clipboard Alignment Number Editing 0 Year Cash flow (55,939.28) 1 13,000.00 2$13,000.00 3 $ 13,000.00 $13,000.00 5 13,000.00 6 13,000.00 $13,000.00 $ 13,000.00 9l $ 13,000.00 17 19 IRR =IRRI 18:11 Sheet1 Sheet2 S:12 AM O Type here to search

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