(Ignore income taxes in this problem.) The following data pertain to an investment project: The internal rate of return is closest to:
A)13%
B)14%
C)15%
D)16%

Question

(Ignore income taxes in this problem.) The following data pertain to an investment project:  The internal rate of return is closest to:
A)13% 
B)14% 
C)15% 
D)16%

Quizplus · Accepted Answer

To calculate the internal rate of return, we need to solve for the discount rate that makes the net present value of the project equal to zero. Using a financial calculator or Excel function, we find that the IRR of this project is approximately 15%. Choice C is the closest option to this answer.

(Ignore Income Taxes in This Problem