what is the IRR for the following project if its initial after tax cost is $5000000...

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?

Expert Solution

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.

jeff jeffy answered 6 months ago

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