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What is the IRR of a project that costs $74,361.78 and provides cash-inflows of $25,000 annually for four years
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What is the IRR of a project that costs $74,361.78 and provides cash-inflows of $25,000 annually for four years

User Creabine
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1 Answer

6 votes

Answer:

13%

Step-by-step explanation:

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

Cash flow in year 0 = $-74,361.78

Cash flow in year 1 - 4 = 25,000

IRR = 13%

User Tanktalus
by
4.3k points
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