Project A has a cost of $1,260 and provides a cash inflow of $1,449 in one years' time.What is its IRR?
A)35%
B)0%
C)25%
D)15%

Name: Project A has a cost of $1,260 and provides a cash inflow of $1,449 in one years' time.What is its IRR? A)35% B)0% C)25% D)15%
Brand: Quizplus
Rating: 4.8 (37 reviews)

Question

Quizplus · Accepted Answer

The IRR is the discount rate that makes the net present value (NPV) of the project zero. Using the formula for IRR, we find that the IRR is approximately 15%.

Project a Has a Cost of $1,260 and Provides a Cash