Final answer:
The IRR or justifiable rate of return (JPR) of an initial $11,000 outlay with a $16,592 return after 7 years must be computed using a financial calculator or appropriate software by solving the equation where the present values of cash flows net out to zero.
Step-by-step explanation:
To calculate the internal rate of return (IRR) for an investment, you would use the equation that sets the net present value (NPV) of all cash flows to zero. In the case of a single cash flow, as with the investment example provided, you can simplify the calculation. The IRR is found by solving the following equation for 'r': -Initial Outlay + (Cash Flow at the end of the project) / (1 + r)^number of years = 0.
In this example, where the initial outlay is $11,000 and the single cash flow received after 7 years is $16,592, the equation would be: -$11,000 + $16,592 / (1 + r)^7 = 0. To solve for 'r', which is the IRR or the justifiable rate of return (JPR), you would need a financial calculator or software to compute the exact value.