Question
In: Finance
Day Interiors is considering a project with the following cash flows. What is the IRR of...
Day Interiors is considering a project with the following cash flows.
What is the IRR of this project?
Year Cash Flow
0 -$100,400
1 35,900
2 50,800
3 45,000
Solutions
Expert Solution
Let irr be x%
At irr,present value of inflows=present value of outflows.
100400=35900/1.0x+50800/1.0x^2+45000/1.0x^3
Hence x=irr=14.32%(Approx)
jeff jeffy answered 2 years agoRelated Solutions
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0_____1_____2_____3_____4
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–$11,768
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Year
Cash Flow
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4,200
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6,100
Multiple Choice
21.46%
21.9%
22.34%
20.8%
23%
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