Question

Iron Works International is considering a project that will produce annual cash flows of $37,200, $45,900, $56,600, and $22,100 over the next four years, respectively. What is the internal rate of return if the project has an initial cost of $113,800

Answer 1

Answer:

IRR is 16.38%

Explanation:

The formula for the internal rate of return (IRR) is very useful in this case.

=IRR(values)

The values , in this case, are the cash flows which consist of cash outflow of $113,800 at the inception followed by cash inflows in the succeeding years as shown in the attached.