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Consider the following project Cash flows Cash flows Cash flows Projects CO C1 C2 A -30 20 20 What is the IRR of the project?

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Answer #1

Let irr be x%
At irr,present value of inflows=present value of outflows.

30=20/1.0x+20/1.0x^2

Hence x=irr=21.53%(Approx)

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