Internal rate of return: What is the internal rate of return that Turnbull can earn on this project? (Round to the nearest percent.)

Question

Quizplus · Accepted Answer

To calculate the internal rate of return, we need to find the discount rate that makes the NPV of the project equal to zero. Using the cash flows provided, the IRR for this project is 44%. This is the highest IRR among the given options and is therefore the best choice for Turnbull.

Internal Rate of Return: What Is the Internal Rate of Return