Internal rate of return: Signet Pipeline Co. is looking to install new equipment that will cost $2,750,000. The cash flows expected from the project are $612,335, $891,005, $1,132,000, and $1,412,500 for the next four years. What is Signet's internal rate of return? (Round to the nearest percent.)

Question

Quizplus · Accepted Answer

Using a financial calculator, the internal rate of return for these cash flows is approximately 15.23%. Rounded to the nearest percent, the answer is 15%, which corresponds with choice C.

Internal Rate of Return: Signet Pipeline Co