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Question 3 2 pts Management of Great Flights, Inc., an aviation firm, is considering purchasing three aircraft for a total co

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Answer #1

Internal rate of return can be calculated using a financial calculator by inputting the below:

  • Press the CF button.
  • CF0= It is -$161,000,000 here. 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 3.7989%.

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

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