Compute the internal rate of return for the cash flows of the following two projects: Cash Flows

Question:

Compute the internal rate of return for the cash flows of the following two projects:

Cash Flows ($)

Year ..........Project ..........A Project B

0 ..............−$5,700 .............−$3,450

1 ................2,750 ................1,380

2 ................2,800 ................1,800

3 ................1,600 ................1,200

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...