You are evaluating purchasing the rights to a project that will generate after tax expected cash flows of $90,000 at the end of each of the next five years, plus an additional $1,000,000 at the end of the fifth year as the final cash flow. You can purchase this project for $950,000.

What rate of return would you earn on the investment (aka what is the internal rate of return)?

Answer rating: 100% (QA)

To calculate the internal rate of return IRR we need to s... View the full answer