A project with an initial cost of 76940 is expected to gener

A project with an initial cost of $76,940 is expected to generate annual cash flows of $18,120 for the next 8 years. What is the project\'s internal rate of return?

15.04%

16.71%

15.87%

18.10%

18.57%

Let irr be x%
At irr,present value of inflows=present value of outflows.

76940=18120/1.0x+18120/1.0x^2+................+18120/1.0x^8

Hence x=irr=16.71%(Approx).

$A project with an initial cost of $76,940 is expected to generate annual cash flows of $18,120 for the next 8 years. What is the project\'s internal rate of ret$

A project with an initial cost of 76940 is expected to gener

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