In: Finance
Project L costs $52,093.65, its expected cash inflows are $11,000 per year for 11 years, and its WACC is 9%. What is the project's IRR? Round your answer to two decimal places.
The answer is pasted in Image format along with description- Using Excel formula
Using Trial & Error method for
The accurate one is spreadsheet based method to arrive at correct IRR however in exams in case computers is not available then Trial & Error method can be used to arrive at near correct IRR in the given case difference is in the range of 0.6-0.7% which is negligible.