Decode Genetics purchased lab equipment for $600,000 that will generate net cash flows of $130,000 per year for 10 years. What is the IRR for this project?

Question

Quizplus · Accepted Answer

Using a financial calculator, the IRR for this project is 17.26%. This is the rate at which the present value of the cash inflows equals the cost of the investment. Therefore, the best choice is B.

Decode Genetics Purchased Lab Equipment for $600,000 That Will Generate