Homework SourseA project has the following cash flows Year Cash Flow 0 405
A project has the following cash flows: Year Cash Flow 0 $ 40,500 1 – 19,500 2 – 30,500 What is the IRR for this project?
Solution
IRR is the rate at which, NPV of the project is 0.
At around 14.13%, NPV is 1.11 (near 0).
| Particulars | 0 | 1 | 2 | Total |
| Cash flow | -40,500.00 | 19,500.00 | 30,500.00 | |
| Discount rate | 1 | 0.8761938 | 0.7677156 | |
| Present value | -40,500.00 | 17,085.78 | 23,415.33 | 1.11 |
