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What is the IRR of the following set of cash flows? (Do not round intermediate calculations and enter your answer as a percen

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Answer #1

The IRR is the interest rate that makes the NPV of the project equal to zero. So, the equation that defines the IRR for this project is:

0 = –$15,900 + $6,600 / (1 + IRR) + $7,900 / (1 + IRR)2 + $6,400 / (1 + IRR)3

IRR = 15.08%

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