An investment of $143,000 is expected to generate net operating cash inflows of $62,000 in each of three years. What is the internal rate of return?

Question

Quizplus · Accepted Answer

To calculate the internal rate of return (IRR), we need to find the discount rate that makes the net present value (NPV) of the cash inflows equal to the initial investment. Using a financial calculator or Excel, we can find that the IRR of this investment is approximately 14.7%, which falls between 13% and 15%. Therefore, the correct choice is C.

An Investment of $143,000 Is Expected to Generate Net Operating