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Project L requires an initial outlay at t = 0 of $84,155, itsexpected cash inflows...

Project L requires an initial outlay at t = 0 of $84,155, its expected cash inflows are $14,000 per year for 11 years, and its WACC is 12%. What is the project's IRR? Round your answer to two decimal places.

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Expert Solution

Internal rate of return is calculated using a financial calculator by inputting the below:

  • Press the CF button.
  • CF0= -$84,155. It is entered with a negative sign since it is a cash outflow.
  • Cash flow for each year should be entered.
  • Press Enter and down arrow after inputting each cash flow.
  • After entering the last cash flow cash flow, press the IRR and CPT button to get the IRR of the project.

The IRR of the project is 11.72%.

jeff jeffy answered 2 years ago
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