Iron works international is considering a project that will produce annual cash flows of $37,400, $46,100, $56,800, and $22,300 over the next four years, respectively. What is the internal rate of return if the project has an initial cost of $113,600?
Let irr be x%
At irr,present value of inflows=present value of outflows.
113,600=37,400/1.0x+46,100/1.0x^2+56,800/1.0x^3+22,300/1.0x^4
Hence x=irr=16.73%(Approx).
Iron works international is considering a project that will produce annual cash flows of $37,400, $46,100,...
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