What is the IRR of the following set of cash flows?  Year Cash Flow0 –$9,503            1 4,300            2 5,500            3 3,900

Question

What is the IRR of the following set of cash flows?  Year Cash Flow0 –$9,503            1 4,300            2 5,500            3 3,900
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Solution 1

The Internal Rate of Return (IRR) is the discount rate that makes the Net Present Value (NPV) of a series of cash flows equal to zero. It's the rate at which the present value of future cash inflows equals the initial investment outflow.

Here's how to calculate it:

  1. Set up the equation for NPV, Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv

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