Mexicali Foods determined the net operating cash inflows during a project's life would not be equal in amount.How can the internal rate of return be found?

Question

Quizplus · Accepted Answer

Since the net operating cash inflows during the project's life are not equal, the only way to determine the internal rate of return is by trial and error using present value tables, a spreadsheet program, or a financial calculator. This method involves calculating present values at different discount rates until the sum of the present values of the cash inflows equals the initial investment.

Mexicali Foods Determined the Net Operating Cash Inflows During a Project's