Question

You've estimated the following cash flows (in $) for a project: A B 1 Year Cash...

You've estimated the following cash flows (in $) for a project:

A B
1 Year Cash flow
2 0 -5,400
3 1 1,325
4 2 2,148
5 3 2,258

   Attempt 3/10 for 6 pts.

Part 1

What is the IRR for the project?

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Answer #1

IRR(Internal Rate of Return) is the rate at which the NPV =0.

IRR is computed here using Excel.The function used is =IRR()

The formula used=IRR(B2:B5).The IRR =2.80%

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