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?

a. 21.72%

b. 22.15%

c. 20.63%

d. 21.29%

e. 22.81%

business finance

Answer 1

Answer #1

Let irr be x%

At irr,present value of inflows=present value of outflows.

8208=3200/1.0x+3500/1.0x^2+5800/1.0x^3

Hence x=irr=21.72%(Approx).

Answer 2

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