Answer:
16.09%
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator:
Cash flow in year 0 = –$ 27,600
Cash flow in year 1 = 11,600
Cash flow in year 2 = 14,600
Cash flow in year 3 = 10,600
IRR = 16.09%
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
I hope my answer helps you