Initial Outlay Cash Flow in Period
1 2 3 4
-$4,000 $1,546.17 $1,546.17 $1,546.17 $1,546.17
The IRR (to the nearest whole percent)is

Question

Quizplus · Accepted Answer

To calculate the IRR, we need to find the discount rate at which the net present value (NPV) of the cash flows equals zero. Using a financial calculator or Excel, we can input the cash flows and solve for the IRR, which in this case is approximately 20%. Therefore, the best choice is to invest in this project since the IRR is greater than the required minimum rate of return.