Question: What does the Internal Rate of Return evaluate? How should the percentage value that the IRR calculation provides be interpreted? Calculate the IRR for the
What does the Internal Rate of Return evaluate? How should the percentage value that the IRR calculation provides be interpreted?
Calculate the IRR for the project that has a $86,347 investment and the following returns. Should this project be undertaken if the MARR is 16%?
| Year | 1 | 2 | 3 | 4 |
| Cash Flows | $34,762 | $27,893 | $20,674 | $43,568 |
Calculate the IRR for the following cash flow stream:
| 0 | 1 | 2 | 3 | 4 | 5 | |
| Cash Flows | -$12,000 | $56,000 | $12,000 | -$180,000 | $24,000 | $120,000 |
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