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What is the IRR of a 5-year project with an initial cost of $4 million, $0.5...

What is the IRR of a 5-year project with an initial cost of $4 million, $0.5 million cash flows for each year in year 1 and 2, and $1.5 million cash flows for each year in year 3, 4 and 5?

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Answer #1

Solution :

The IRR of the 5 Year project = 9.60 %

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

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