Question

1. Corner Jewelers, Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected. Year 0 2 دیا 5 Cash flows -$1,150 $325 $325 $325 $325 $325

Answer 1

B E G 1 А Internal rate of return (IRR) Years 2 3 0 4 5 2 Annual cash flow (S) (1,150) 325 325 325 325 325 6 3 7 4 8 5 9 10 Internal rate of return (IRR) = 12.75% 11 12 The Internal rate of return (IRR) is 12.75% 13 14

B с D E A 1 Internal rate of return (IRR) 2 Years 30 4 5 2 Annual cash flow (S) -1150 325 325 325 325 325 6 3 7 4 8 5 9 10 Internal rate of return (IRR) = =IRR(B3:B8) 11 12 The Internal rate of return (IRR) is 12.75% 13 14