Question

Project L costs $60,106.33, its expected cash inflows are $12,000 per year for 11 years, and its WACC is 10%. What is the project's IRR? Round your answer to two decimal places. %

Answer 1

Hello Sir/ Mam

YOUR REQUIRED ANSWER IS 16.1%

Given that

Initial Outflow = $60,106.33

Annual Inflow = $12,000

n =11years

Time	Cashflows
0	-$60,106.33
1	$12,000.00
2	$12,000.00
3	$12,000.00
4	$12,000.00
5	$12,000.00
6	$12,000.00
7	$12,000.00
8	$12,000.00
9	$12,000.00
10	$12,000.00
11	$12,000.00
IRR	16.10%

I hope this solves your doubt.

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