A project with an initial cost of $68,200 is expected to generate annual cash flows of...
A project with an initial cost of $68,200 is expected to generate annual cash flows of $18,010 for the next 7 years. What is the project's internal rate of return?
20.26%
18.23%
19.75%
17.32%
16.41%
Homework Answers
internal rate of return is a rate when NPV=0
-68200+18010*((1-(1+r)^(-n))/r)=0
use trial and error method to find value of r so that NPV=0
After trying for many values, we get r=18.23% is IRR rate
the above is answer..
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