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tia_tia [17]
3 years ago
7

The project is expected to generate the following net cash flows:

Business
1 answer:
iVinArrow [24]3 years ago
8 0

Answer:

Correct option is A 5.01%

Explanation:

Let irr be x%

At irr,present value of inflows=present value of outflows.

1,500,000=350,000/1.0x+475,000/1.0x^2+400,000/1.0x^3+475000/1.0x^4

Hence x=irr=5.01%(Approx).

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