Question

Moepro, Inc. is considering a five - year project that has an initial outlay or cost of $120,000. The respective future cashinflows from its projects for years 1, 2, 3, 4, and 5 are: $55,000, $45,000, $35,000, $25,000, and $15,000. Moepro uses the internal rate of return method to evaluate projects. What is the projects IRR?

Moepro Inc. is.coming a five-year pred that has to or cost of 120.000. The respective cash rows tomis project for years 1.2.3.4 and 5 $55.000.545.000 $35.000,25.000 and $15.00 Morps the leader of return method to evaluate projects What is the project IRRO O A The 2550 OB Thesis about 1910 OC The Ritha 22 50% OD. This woul

The IRR is over 25.50%

The IRR is about 19.16%

The IRR is less than 22.5%

The IRR is about 17.86%

Answer 1

Ans is The IRR is about 17.86%

A B с D 20 21 Calculation of IRR- 22 Year Particulars Amount 23 0 Initial investment $ -120,000 24 1 Annual cash inflow $ 55,000 25 Annual cash inflow $ 45,000 26 Annual cash inflow $ 35,000 27 4 Annual cash inflow $ 25,000 28 5 Annual cash inflow $ 15,000 29 IRR 17.86% 30 N 3

А B C 20 21 Calculation of IRR- 22 Year 23 0 24 1 25 2 26 3 27 4 28 5 Particulars Initial investment Annual cash inflow Annual cash inflow Annual cash inflow Annual cash inflow Annual cash inflow IRR Amount - 120000 55000 45000 35000 25000 15000 | EIRR(C23:C28) 29 30 21

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