Homework Answers
Let irr be x%
At irr,present value of inflows=present value of outflows.
7.8=1.8/1.0x+1.8/1.0x^2+1.8/1.0x^3+1.8/1.0x^4+1.8/1.0x^5+1.8/1.0x^6
Hence x=irr=0.1017(Approx).
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