Homework Answers
Answer is d. 4.37%
The above can be arrived as
IRR = (Expected Cash flow/ Initial Outlay)^(1/Number of Periods)-1
=(160/100)^(1/11)-1
=(1.6^.0909)-1
=1.0436-1= 0.0436 or 4.36%
Thus, Internal Rate of Return (IRR) is 4.37%
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