Question

Sydney is considering a project. A capital budgeting project is expected to have the following cash flows: Year Cash Flows 0 -$1,000,000 1 $400,000 2 $500,000 3 $700,000 What is the project's internal rate of return

Answer 1

Based on the cashflows of the project that Sydney wants to get involved in, the internal rate of return for this project is 24.90%.

What is the internal rate of return for Sydney's project?

This can be found using a spreadsheet where the IRR function is available.

Input the cashflows as shown attached and then use the IRR function to get the return:

= 24.9%

This figure shows the rate of return that would cause the Net Present Value of the cashflows to be 0.

Find out more on the IRR at brainly.com/question/24301559.

#SPJ1