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

Question

Quizplus · Accepted Answer

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

What Is the Approximate IRR for a Project That Costs