What is the IRR of the following set of cash flows?
A) 12.93 percent
B) 14.90 percent
C) 15.81 percent
D) 16.33 percent
E) 17.78 percent

Question

What is the IRR of the following set of cash flows? 
A) 12.93 percent 
B) 14.90 percent 
C) 15.81 percent 
D) 16.33 percent 
E) 17.78 percent

Quizplus · Accepted Answer

To determine the IRR, we need to solve for the discount rate that makes the net present value (NPV) of the cash flows equal to zero. We can use a financial calculator or Excel to solve for the IRR. Doing so gives us an IRR of 15.81 percent. Therefore, the best choice is C).

What Is the IRR of the Following Set of Cash