A project is estimated to cost $71,580 and provide annual net cash flows of $15,000 for nine years Determine the internal rate of return for this project, using Exhibit 2 Exhibit 2 Present Value of an Annuity of $1 at Compound Interest 6 20 Year 10 12 15 0 943 0 870 0 909 0 893 0 833 1 736 1 833 1 ...

A project is estimated to cost $71,580 and provide annual net cash flows of $15,000 for nine

Question:

A project is estimated to cost $71,580 and provide annual net cash flows of $15,000 for nine years. Determine the for this project, using Exhibit 2.

Exhibit 2:

Present Value of an Annuity of $1 at Compound Interest 6% 20% Year 10% 12% 15% 0.943 0.870 0.909 0.893 0.833 1.736 1.833

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...

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