Project L costs $50,968.24, its expected cash inflows are $12,000 per year for 8 years, and its WACC is 9%. What is the project's IRR? Round your answer to two decimal places.
Project's IRR is the rate at which Net present value of project is 0. | ||||||
Year | Cash flows | |||||
0 | $ -50,968.24 | |||||
1 | 12000 | |||||
2 | 12000 | |||||
3 | 12000 | |||||
4 | 12000 | |||||
5 | 12000 | |||||
6 | 12000 | |||||
7 | 12000 | |||||
8 | 12000 | |||||
IRR | = | =irr(C4:C12) | ||||
= | 16.70% | |||||
C4:C12 is the range of cash flows from year 0 to year 8. | ||||||
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