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

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, which is the sum of the present values of all cash flows. The equation is: NPV = CF0 + CF1/(1+r) + CF2/(1+r)^2 + CF3/(1+r)^3 + ... + CFn/(1+r)^n = 0

2. Substitute the given cash flows into the equation: 0 = -9503 + 4300/(1+r) + 5500/(1+r)^2 + 3900/(1+r)^3

3. Solve the equation for r.

Unfortunately, this equation can't be solved algebraically for r when there are more than two cash flows. You'll need to use a financial calculator or software like Excel to find the IRR.

In Excel, you can use the IRR function. Enter the cash flows in a single row or column, and then use the IRR function on that range. The function will return the IRR.

Please note that the IRR calculation assumes that all cash flows are reinvested at the IRR rate, which may not be realistic.