In: Finance
what is the IRR for the following project if its initial after tax cost is $5000000 and it is expected to provide after tax operating cash inflows of $1800000 in yr 1, $1750000 in yr 2, $1680000 in yr 3 and $1300000 in yr 4?
Solution :
The IRR of the project = 12.2410 %
= 12.24 % ( when rounded off to two decimal places )
Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.