Project K costs 4737819 its expected cash inflows are 10000

Project K costs $47,378.19, its expected cash inflows are $10,000 per year for 9 years, and its WACC is 14%. 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.

47,378.19=10000/1.0x+10000/1.0x^2+.................+10000/1.0x^9

Hence x=irr=15.20%(Approx).

$Project K costs $47,378.19, its expected cash inflows are $10,000 per year for 9 years, and its WACC is 14%. What is the project\'s IRR? Round your answer to tw$

Project K costs 4737819 its expected cash inflows are 10000

Solution

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