A project which has an initial cost of $9,191 will generate the following net cash flows at the end of each year:

Year 1: +$4,000

Year 2: +$3,000

Year 3: +$2,000

Year 4: +$2,000

It is known that this project has a positive NPV at the company's cost of capital of 8%. Calculate IRR of this project.

Answer rating: 100% (QA)

IRR R1 NPV1R2 R1 NPV1 NPV2 where R1 and R2 are randomly selected discount rates NPV1 ... View the full answer