Question: Assuming that the project will yield exactly a 12% rate of return, what is the expected net cash inflow for Year 3? Factor of the

Assuming that the project will yield exactly a 12% rate of return, what is the expected net cash inflow for

Year 3?

Factor of the internal rate of return = Investment required /Annual net cash in flow.

The factor of the internal rate of return that corresponds to 12% is 2.402.

how did they get 12% to 2.402?

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