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

The internal rate of return (IRR) is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero. Using the given cash flows, the IRR is calculated to be approximately 13.6%.

What Is the Internal Rate of Return for a Project