Use the table for the question(s)below.
Consider a project with the following cash flows in $:
-Assume the appropriate discount rate for this project is 15%.The IRR for this project is closest to:
A)21%.
B)22%.
C)15%.
D)60%.

Question

Use the table for the question(s)below.
Consider a project with the following cash flows in $: 
-Assume the appropriate discount rate for this project is 15%.The IRR for this project is closest to:
A)21%. 
B)22%. 
C)15%. 
D)60%.

Quizplus · Accepted Answer

To calculate the IRR, we need to find the discount rate at which the project's present value of cash flows equals zero. Using a financial calculator or spreadsheet, we can find that the IRR for this project is approximately 22%. Therefore, the answer is B.

Use the Table for the Question(s)below