Question

A company is making an investment of $2,180,262 that will yield the following cash flows:

Year 1		$254,800
Year 2		$422,300
Year 3		$713,200
Year 4		$797,700
Year 5		$1,059,982

Click here to view factor tables

What is the internal rate of return of the investment? (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to 0 decimal places, e.g. 12%.)

Internal rate of return

enter internal rate of return in percentage rounded to 0 decimal place %

Answer 1

The Internal Rate of Return will be 12%

Since you have not provided the factor table therefore IRR is calculated using Excel.

First you need to arrange data in year wise and then You just need to use the formula of IRR in excel.

I hope this clear your doubt.

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