Iron Works International is considering a project that will produce annual cash flows of $38,000, $46,700, $57,400, and $22,900 over the next four years, respectively. What is the internal rate of return if the project has an initial cost of $113,000

Respuesta :

Answer: 17.76%

Explanation:

The Internal Rate of Return is the discount rate that makes the Net Present Value equal to 0.

It can be calculated with several method such as using an Excel worksheet.

= IRR ( -113000,38000,46700,57400,22900)

= 17.76%

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