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You are considering a project that needs $50,000 investment to start. This is a 5 year...

You are considering a project that needs $50,000 investment to start. This is a 5 year project and you are expecting that the project generates annual cash flows after taxes of $10,000, $50,000, $90,000, $20,000 and -$30,000 respectively. What is the IRR of this project if the required rate of return is 8%? Round to the nearst hundredth pecent. Do not include the percent sign in your answer. If there are multiple answers, then type NA. (i.e. if your answer were -12.34%, type 12.34 as your answer.)

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Answer #1

Using excel to calculate IRR

A B C D E F
1 Year 0 1 2 3 4 5
2 Cash Flows -50000 10000 50000 90000 20000 -30000
IRR 57.08% (IRR(A2:F2,0%)
IRR 2 -56.03% (IRR(A2:F2,-45%)

IRRs are  57.08 and -56.03

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