Question 17 5 pts Maxwell Feed Seed is considering a projec

Question 17 5 pts Maxwell Feed & Seed is considering a project that has an initial cash outflow of $7.300. Expected cash inflows are $2,000 in year 1, $2,025 in year 2, $2,050 in year 3, $2.075 in year 4, and $2.100 in year 5. What is the project\'s IRR? Your answer should be between 9.52 and 16.20, rounded to 2 decimal places, with no special characters

Solution

The rate of Interest be IRR

Let the IRR be x.

Now , Present Value of Cash Outflows=Present Value of Cash Inflows

7300= 2000/(1.0x) + 2025/ (1.0x)^2 + 2050/ (1.0x)^3 +2075 / (1.0x)^4 +2100/ (1.0x)^5

Or x= 12.38%

Hence the IRR is 12.38%