Question

Starwood Inc. is investigating a project with the following cash flows and its cost of capital...

Starwood Inc. is investigating a project with the following cash flows and its cost of capital is 13%.

Year                Cash Flow

0                      -$34,000,000

1                      $ 9,000,000

2                      $ 9,000,000

3                      $ 9,000,000

4                      $ 9,000,000

5                      $ 9,000,000

6                      $ 9,000,000

7                      $ 9,000,000

What is the internal rate of return (IRR) of this project?

Group of answer choices

18.84%

26.47%

15.57%

18.31%

9.21%

Homework Answers

Answer #1

Ans 18.31%

the internal rate of return (IRR) of this project is 18.31%

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