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Blinding Light Co. has a project available with the following cash flows:
Year Cash Flow
0 $35,710
1 7,850
2 9,410
3 13,280
4 15,450
5 10,100
What is the project's IRR?
a. 15.89%.
b. 16.55%.
c. 17.65%.
d. 14.30%.
e. 17.21%.

Respuesta :

Answer:

a. 15.89%

Explanation:

The computation of project IRR is shown below:-

Year Cash Flow

0 -35,710

1 $7,850

2 $9,410

3 $13,280

4 $15,450

5 $10,100

IRR 15.89%

It is the rate of return at which the net present value is equivalent to zero

We simply use the formula i.e.

= IRR(B2:B7)

For more clarification please find the spreadsheet as attached.

Ver imagen andromache

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