Assume the following for a project under evaluation:

The project's life is 4 years.

The total time zero, initial cost of $50,000.

The total net operating cash flow each year is $15,000.

In addition to the terminal year operating cash flow, there is a non-operating, terminal year cash flow of $8,000.

What is the project's IRR? Accept or reject the project? Again, assume the cost of capital for a project of this risk is 7%.

Answer rating: 100% (QA)

To calculate the Internal Rate of Return IRR for the project we need to find the discount rate at wh... View the full answer