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ABC Industries is considering an expansion project with cash flows of -$325,000, $67,500, $116,100, $110,500, and...

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Finance

ABC Industries is considering an expansion project with cashflows of -$325,000, $67,500, $116,100, $110,500, and $152,700 foryears 0 through 4. Compute the IRR.

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4.1 Ratings (592 Votes)
IRR is the rate at which NPV0 ie PV of inflows PV of outflows It is calculated by trial and error method Lets find NPV at say 12 Year Cashflow PVF12 CashflowPVF 0 325000 1 32500000 1 67500 08929    See Answer
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Transcribed Image Text

ABC Industries is considering an expansion project with cashflows of -$325,000, $67,500, $116,100, $110,500, and $152,700 foryears 0 through 4. Compute the IRR.

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