Question

A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $379,650 and is expected to generate cash inflows of $150,000 each year for three years. The approximate internal rate of return on this project is

Answer 1

9%

Step-by-step explanation:

- $379,650 CF 0

$150,000 CF 1

$150,000 CF 1

$150,000 CF 1

The approximate internal rate of return on this project is 9%