What is the internal rate of return (IRR) of this project given the following cash flows? Year CF 0 -$9,800 1 $1,000 2 $4,500 3 $1,000 4 $1,500 5 $1,700 6 $2,700 Convert...

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Finance

What is the internal rate of return (IRR) of this project giventhe following cash flows?
Year                CF
0               -$9,800
1                  $1,000
2                  $4,500
3                  $1,000
4                  $1,500
5                  $1,700
6                 $2,700

Convert your answer to percentage and round off to two decimalpoints. Do not enter % in the answer box.

Answer & Explanation Solved by verified expert

3.6 Ratings (553 Votes)

Ans At IRR the NPV of a project is zero We can calculate it by hit and trial method Let the IRR be 7 PROJECT Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Net Cash Flow 980000 100000 450000 100000 150000 170000 270000 Discount See Answer

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What is the internal rate of return (IRR) of this project giventhe following cash flows?Year CF0 -$9,8001 $1,0002 $4,5003 $1,0004 $1,5005 $1,7006 $2,700Convert your answer to percentage and round off to two decimalpoints. Do not enter % in the answer box.