A project has the following cash flows for years 0 through 2, respectively: -10,556, 9,776, 9,987....

A project has the following cash flows for years 0 through 2, respectively: -10,556, 9,776, 9,987. What is the internal rate of return on this project?

Expert Solution

rate	54.0327%
Cash flows	Year	Discounted CF= cash flows/(1+rate)^year	Cumulative cash flow
(10,556.00)	0	(10,556.00)	(10,556.00)
9,776.000	1	6,346.70	(4,209.30)
9,987.000	2	4,209.29	(0.00)

Use IRR funcion in Excel

IRR = 54.03%

jeff jeffy answered 2 years ago

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