Question

Project L requires an initial outlay at t = 0 of $71,219, its expected cash inflows are $11,000 per year for 11 years, and its WACC is 14%. What is the project's IRR? Round your answer to two decimal places.

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Answer 1

Hi

we will use excel IRR formula to find our project's IRR

Below is excel formula and value for IRR:

Year	Cash Flow
0	-71,219
1	11,000
2	11,000
3	11,000
4	11,000
5	11,000
6	11,000
7	11,000
8	11,000
9	11,000
10	11,000
11	11,000
IRR	10.07%

hence IRR is 10.07%

Thanks