In: Finance
Given the following free cash flows,
PROJECT A PROJECT B PROJECT
C
Initial outlay -70,000 -140,000
-450,000
Cash inflows:
Year 1 12,000 120,000 220,000
Year 2 18,000 30,000 220,000
Year 3 22,000 30,000 220,000
Year 4 28,000 30,000 --------
Year 5 32,000 30,000 ---------
What is the IRR of project A?
What is the IRR of project B?
What is the IRR of project C?
determine the IRR for the three independent projects A, B, and C