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Find the internal rate of return (IRR) of a project that requires an initial investment of...

Find the internal rate of return (IRR) of a project that requires an initial investment of $110,000 and provides cash flows of $13,500 per year for 15 years? The investor’s required return is 18.5%

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Answer #1

IRR is the rate at which the NPV = 0

PV = 110,000

PMT = -13,500

N = 15

FV = 0

CPT I/Y

I/Y = 8.81775364

IRR = 8.81775364%

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