ssignment Module 5 Homework Ampment Score 000 Save Submit As

ssignment: Module 5 Homework Ampment Score 0.00% Save Submit Assignment for Grading Questions Problem 11.02 Question 12 of 20 Check My Work (3 remaining) 12 o Click here to read the eBook: Internal Rate of Return (IRR) IRR 13. O 14. 15O places Project L costs $42,380.49, its expected cash inflows are $9,000 per year for 11 years, O 1 and its WACC is 12%, what is the project\'s IRR? Round your answer to two decimal 16O 17.C 1s C Check My Work (3 remaining) esc Fs f6 2 3 4

Solution

At 17.7%, NPV of project is $0. That means IRR of the project is 17.7%

Particulars	Year 0	Year 1 - 11
Cash flow	-42380.5	9000
Present value factor @17.7%	1	4.708943
Present value	-42380.5	42380.49
Net present value	-0.00492