Question

27- Blinding Light Co. has a project available with the following cash flows: Year Cash Flow...

27-

Blinding Light Co. has a project available with the following cash flows:

Year Cash Flow
0 ?$35,710
1 7,850
2 9,410
3 13,280
4 15,450
5 10,100


What is the project's IRR?

15.89%

16.55%

17.65%

14.30%

17.21%

0 0
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Answer #1

IRR is the discount rate at which the present value of cash inflows is equal to the present value of cash outflow. Thus, at I

1 Year Cash flovw 35710 7850 9410 13280 15450 10100 8 Calculate IRR using IRR function as follows: 9IRR IRR(B2:B7)

The results obtained are as follows:

Cash flow 0-$35,710.00 1 $7,850.00 2 $9,410.00 3 $13,280.00 4 $15,450.00 5 $10,100.00 1 Year 4 8 9 Calculate IRR using IRR fu

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