Diamond Enterprises is considering a project that will produce cash inflows of $238,000 a year for three years followed by $149,000 in year 4.What is the internal rate of return if the initial cost of the project is $749,000?
A)3.43 percent
B)4.29 percent
C)5.81 percent
D)6.32 percent
E)7.55 percent

Question

Quizplus · Accepted Answer

The IRR is defined as the interest rate that makes the NPV equal zero.

Diamond Enterprises Is Considering a Project That Will Produce Cash