Project Delta has the following cash flows: 

CF 0 –$1,000,000 

CF 1 $100,000 

CF 2 $500,000 

CF 3 $500,000 

CF 4 $30,000

 Calculate the project’s IRR given a required rate of return of 22%. NPV @ r =22% = –$293,206

Answer rating: 100% (QA)

SOLUTION To calculate the projects internal rate of return IRR we need to find the discount rate that makes the net present value NPV of the cash flows equal to zero Since we know that the required rate of return is 22 we can use the NPV formula with a discount rate of 22 to find the projects NPV The NPV formula is NPV CF0 CF1 1r1 CF2 1r2 CF3 1r3 CF4 1r4 where CF0 is the initial cash flow ... View the full answer