Bell Hound Financial is considering increasing its insurance product offerings they estimate that the project will cost $79,131 to be paid at the inception of the project. They estimate that the project will yield cash flows of $10,662 in 2 years, $25,465 in 6 years, $33,471 in 13 years, and $55,221 in 21 years. Find the Internal rate of return for this project assuming interest is compounded annually.

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How would you do this problem if interest was compounded quarterly?

Answer rating: 100% (QA)

To calculate the Internal Rate of Return IRR for the project we need to find the discount rate that makes the present value of the projects cash flows ... View the full answer