If a project's IRR is 13% and the project provides annual cash flows of $15,000 for 4 years,how much did the project cost?
A) $44,617
B) $52,200
C) $60,000
D)$72,747

Question

Quizplus · Accepted Answer

The IRR is the discount rate that makes the NPV of cash flows equal to zero. Using the IRR of 13% and the cash flows of $15,000 for 4 years, the present value of these cash flows is $44,617, which is the initial cost of the project.

If a Project's IRR Is 13% and the Project Provides