Question

Internal rate of return: For the project shown in the following​ table, Initial Investment $120,000 Year...

Internal rate of return: For the project shown in the following​ table,

Initial Investment $120,000
Year (t)   Cash inflows
1   $35,000
2   $40,000
3   $20,000
4   $40,000
5   $15,000

​, calculate the internal rate of return

​(IRR).

Then​ indicate, for the​ project, the maximum cost of capital that the firm could have and still find the IRR acceptable.

The​ project's IRR is ___​%.

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Answer #1

fIRR(B2:B7) B8 A. C E G Н Cash flows 1 year O $(120,000.00) 1$ 35,000.00 2 $ 40,000.00 3 $ 20,000.00 4 $ 40,000.00 5 $ 15,000

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