Blinding Light Co has a project available with the following

Blinding Light Co. has a project available with the following cash flows:


What is the project\'s IRR?

21.37%

22.80%

22.23%

18.47%

20.52%

Year Cash Flow
0 ?$33,630
1 8,240
2 9,930
3 14,190
4 15,970
5 10,880

Solution

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

33630=8240/1.0x+9930/1.0x^2+14190/1.0x^3+15970/1.0x^4+10880/1.0x^5

Hence x=irr=20.52%(Approx).

Blinding Light Co. has a project available with the following cash flows: What is the project\'s IRR? 21.37% 22.80% 22.23% 18.47% 20.52% Year Cash Flow 0 ?$33,6

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