Project K costs 4558729 its expected cash inflows are 10000

Project K costs $45,587.29, its expected cash inflows are $10,000 per year for 10 years, and its WACC is 13%. What is the project\'s IRR? Round your answer to two decimal places.

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

45,587.29=10000/1.0x+10000/1.0x^2+...................+10000/1.0x^10

Hence x=irr=17.60%(Approx).

$Project K costs $45,587.29, its expected cash inflows are $10,000 per year for 10 years, and its WACC is 13%. What is the project\'s IRR? Round your answer to t$

Project K costs 4558729 its expected cash inflows are 10000

Solution

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