What is the IRR for the following net annual cash flows today -$45 000, Year 1 + $12 000, Year 2 + $37 000, Year 3 + $12 000, Year 4 + $17 000?
A) 26.722%
B) 16.722%
C) 6.722%
D) 36.722%
E) 46.722%

Question

Quizplus · Accepted Answer

Using a financial calculator, the IRR for the given cash flows is 26.722%. This means that the project is expected to generate a return of 26.722%, which is greater than the required rate of return. Therefore, the project should be accepted.

What Is the IRR for the Following Net Annual Cash