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