Question

What is the internal rates of return (IRR) for the project that has an initial outlay of $100 and a single cash inflow of $180 in 6 years?

Please round to FOUR(4) decimals in numbers, not the percentage.

For instance, if the IRR is 5.31%, you put in 0.0531 in the answer.

Answer 1

Project
IRR is the rate at which NPV =0
IRR	10.29%
Year	0	1	2	3	4	5	6
Cash flow stream	-100.000	0.000	0.000	0.000	0.000	0.000	180.000
Discounting factor	1.000	1.103	1.216	1.342	1.480	1.632	1.800
Discounted cash flows project	-100.000	0.000	0.000	0.000	0.000	0.000	100.000
NPV = Sum of discounted cash flows
NPV Project =	0.000
Where
Discounting factor =	(1 + discount rate)^(Corresponding period in years)
Discounted Cashflow=	Cash flow stream/discounting factor
IRR=	10.29% = 0.1029