A company is making an investment of $2,500,000 that will yield the following cash flows: Year 1
Question:
Year 1 .........................$ 250,000
Year 2 .........................$ 440,000
Year 3 .........................$ 650,000
Year 4 .........................$ 850,000
Year 5 ........................$1,102,765
Required
What is the internal rate of return of the investment?
Internal Rate of Return
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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