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Project L costs $52,093.65, its expected cash inflows are $11,000 per year for 11 years, and...

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.

Solutions

Expert Solution

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.


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