If the cash flows for Project M are C₀ = -1,000; C₁ = +200; C₂ = +700; and C₃ = +698, calculate the IRR for the project. A)23 percent B)21 percent C)19 percent D)17 percent

Question

Quizplus · Accepted Answer

To calculate the IRR, we need to find the discount rate at which the present value of all the cash flows is equal to zero. Using a financial calculator or Excel, we can find that the IRR for Project M is approximately 23 percent. Therefore, the best choice is A.

If the Cash Flows for Project M Are C0 =

If the Cash Flows for Project M Are C₀ =