Simkins Renovations Inc. is considering a project that has the following cash flow data. What is...

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Answer 1

Answer #1

IRR refers to the internal rate of return of a project. With the given values, we can determine the value of IRR using excel as:

A B 1 Year 2 Cash Flow -750 0 3 1 300 4. 2 280 5 3 270 6 4 260 7 IRR= 18.26% 8 Formula used: IRR(B2:B6)

Hence, the value of IRR is 18.26%

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