Question

What is the internal rate of return for a project which has the following cash flows?

Year Cash Flow

0         −$ 12,500

1         2,750

2         3,100

3         3,333

4         5,260

Answer 1

File Home Insert Page Layout Formulas Data Review View Help Search Share 14 = = = do Custom AA A # 3 E 0 Times New Roman BIU 3 Wrap Text Merge & Center = % 8 68 Insert Delete Format Ideas Conditional Format as Formatting Table Styles Cell Styles Sort & Find & Filter Select Editing Clipboard F Font Alignment Number Ideas C30 Year's Annual cash flow (S) 0 1 2 -12,500 .750 3,100 3,333 ,260 4 5 Internal rate of retrun (IRR) for the Project = 5.43%

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