Given the following cash flows for Project M: C₀ = -1,000,C₁ = +200,C₂ = +700,C₃ = +698,calculate the IRR for the project. A)23% B)21% C)19% D)17%

Question

Quizplus · Accepted Answer

IRR is the discount rate that makes the NPV of a project equal to zero. In this case, the NPV is:-1,000 + 200/(1+r) + 700/(1+r)^2 + 698/(1+r)^3 = 0Solving for r using a financial calculator or spreadsheet, we get IRR = 23%.

Given the Following Cash Flows for Project M: C0 =

Given the Following Cash Flows for Project M: C₀ =