A company is making an investment of $2,400,000 that will yield the following cash flows: Year 1...........
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A company is making an investment of $2,400,000 that will yield the following cash flows:
Year 1........... $ 250,000
Year 2........... $ 420,000
Year 3........... $ 650,000
Year 4........... $ 850,000
Year 5........... $1,097,193
Required
What is the internal rate of return of the investment?
Internal Rate of Return of IRR is a capital budgeting tool that is used to assess the viability of an investment opportunity. IRR is the true rate of return that a project is capable of generating. It is a metric that tells you about the investment...
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As indicated below the NPV is zero with a required rate ...View the full answer
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