IRR is obtained from trial and error method we have to fix such rate for discount that it forces NPV = 0 or sum of all cash flows equal to zero
IRR = 24.02099%
IRR = 24.02% (two digit rounding)
IRR = R = 
24.02099% 
Present Values 

Year 
Cash flows 
Discount factor or PV factors = Df = 1/(1+R)^Year 
PV of cash flows = Cash flows x Df 
0 
$9,496.00 
1.000000 
$9,496.00 
1 
$6,500.00 
0.806315 
$5,241.05 
2 
$3,400.00 
0.650144 
$2,210.49 
3 
$3,900.00 
0.524221 
$2,044.46 
Total of Present values = NPV = 
$0.0000 
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