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A project is estimated to cost $379,704 and provide annual net cash flows of $78,000 for seven years. Present Value of an Ann

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Answer :- Calculation of the Internal rate of return for this project :-

Present Value = Estimated cost / Annual net cash flows

Present Value = $379,704 / $78,000

Present Value = 4.868

As we can see in the table the Present Value of an annuity factor for seven years at 10%.

So the Internal rate of return (IRR) = 10%

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