Mr. Zhang is considering whether to invest in a risk-free project. The project can bring Mr. Zhang 5000 Yuan of cash inflow at the end of the first year, and 7000 Yuan of cash inflow at the end of the second year. The total investment of the project is 10000 yuan (immediate investment). What is the IRR (internal rate of return) of the project? If the bank provides 10% interest per year, is the project financially feasible?

Answer rating: 100% (QA)

To calculate the IRR of the project we need to find the discount rate that makes the present value o... View the full answer