What is the IRR of the following set of cash flows? Year Cash Flow 0...

Question

Question

What is the IRR of the following set of cash flows?

business finance

Answer 1

Answer #1

Let irr be x%
At irr,present value of inflows=present value of outflows.

11,242=3,900/1.0x+6,700/1.0x^2+6,800/1.0x^3

Hence x=irr=23.06%(Approx).

Answer 2

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