What is the internal rate of return for a project that has a net investment of $370,000 and net cash flows of $60,000 in year 1, $75,000 in year 2, and $85,000 in years 3 through 8?
A) 15.5%
B) 13.6%
C) 17.4%
D) None of these are correct

Question

Quizplus · Accepted Answer

Using a financial calculator, the internal rate of return (IRR) for this project is 13.6%. This is the discount rate that equates the negative net investment to the present value of the positive net cash flows.

What Is the Internal Rate of Return for a Project