Question

Filter Corp. has a project available with the following cash flows: Year Cash Flow 0 −$16,000 1 5800​ 2 7100​ 3 6100​ 4 4900​ What is the project's IRR? Group of answer choices 18.84% 20.93% 21.98% 19.62% 20.41%

Answer 1

		N	A	B=A/((1+R)^N)	R=0.1884
		YEAR	CASHFLOW	Present Value
		0	($16,000)	($16,000)
		1	$5,800	$4,880.66
		2	$7,100	$5,027.58
		3	$6,100	$3,634.80
		4	$4,900	$2,456.96
			SUM	($0)
	IRR (Internal Rate of Return)=Discount rate at which the Net Present Value =Zero
	Assume , R=Internal Rate of Return
	.-16000+5800/(1+R)+7100/((1+R)^2)+6100/((1+R)^3+4900/((1+R)^4)=0
	R=Internal Rate of Return =IRR=	18.84%	(Using IRR function of excel over the CASH FLOW)
	ANSWER:	0.1884
	18.84%		Clipboard Font Allahment Number Styles C14 X for EIRR(D4:08) А E F G H NA B=A/((1+R)^N) R=0.1884 YEAR CASHFLOW Present Value ($16,000) ($16,000) $5,800 $4,880.66 $7,100 $5,027.58 $6,100 $3,634.80 $4,900 $2,456.96 SUM ($0) IRR (Internal Rate of Return)=Discount rate at which the Net Present Value =Zero Assume, R=Internal Rate of Return ..-16000+5800/(1+R)+7100/((1+R)^2)+6100/((1+R)^3+4900/((1+R)^4)=0 13 R=Internal Rate of Return =IRR= ANSWER: 18.84% 18.84%! (Using IRR function of excel over the CASH FLOW) 0.1884 0.18836437762