What is the internal rate of return for a project that has a net investment of $370,000 and net cash flows of $60,000 in year 1, $75,000 in year 2, and $85,000 in years 3 through 8?
A) 15.5%
B) 13.6%
C) 17.4%
D) none of the above are correct

Question

Quizplus · Accepted Answer

Solution:
 11ea10f6_a150_8787_b6b3_75412b1d77ce_TB2040_00 
r = 13% +($7,960 /$7,960 + $5,385)(14% - 13%) = 13.596 or 13.6%

What Is the Internal Rate of Return for a Project