What is the approximate IRR for a project that costs $100,000 and provides cash inflows of $30,000 for 6 years?
A) 19.9%
B) 30.0%
C) 32.3%
D)80.0%

Name: What is the approximate IRR for a project that costs $100,000 and provides cash inflows of $30,000 for 6 years? A) 19.9% B) 30.0% C) 32.3% D)80.0%
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Quizplus · Accepted Answer

The IRR is the discount rate that makes the net present value (NPV) of the cash flows equal to zero. By trial and error or using financial calculators, the IRR for this project is approximately 19.9%.

What Is the Approximate IRR for a Project That Costs