Determine the internal rate of return to the nearest percent on the following projects: a. An initial

Question:

Determine the internal rate of return to the nearest percent on the following projects:

a. An initial outlay of $10,000 resulting in a cash inflow of $2,000 at the end of Year 1, $5,000 at the end of Year 2, and $8,000 at the end of Year 3

b. An initial outlay of $10,000 resulting in a cash inflow of $8,000 at the end of Year 1, $5,000 at the end of Year 2, and $2,000 at the end of Year 3

c. An initial outlay of $10,000 resulting in a cash inflow of $2,000 at the end of Years 1 through 5 and $5,000 at the end of Year 6

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...