What is the internal rate of return on an investment with th
What is the internal rate of return on an investment with the following cash flows?
   
Solution
At around 9.074%, NPV is near 0, that means IRR of the project is 9.074%
| Particulars | Year 0 | Year 1 | Year 2 | Year 3 | 
| Cash flow | -123400 | 26200 | 55800 | 68100 | 
| Present value factor | 1 | 0.916809 | 0.840538 | 0.770613 | 
| Present value | -123400 | 24020.39 | 46902.04 | 52478.74 | 
| Net present value | 1.17 | 

