Question
In: Finance
An investment requires an outlay of $20,000 and has an expected cash flow of $23,700 one...
An investment requires an outlay of $20,000 and has an expected cash flow of $23,700 one year later. What is the internal rate of return of the investment?
Solutions
Expert Solution
Let irr be x%
At irr,present value of inflows=present value of outflows.
20,000=23700/1.0x
1.0x=(23700/20,000)
1.0x=1.185
x=1.185-1
=18.5%=irr
jeff jeffy answered 2 years agoRelated Solutions
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