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tensa zangetsu [6.8K]
3 years ago
15

An investment that costs $105,000 today is expected to produce the following cash inflows over each of the next five years: $20,

000; $25,000; $23,000; $22,000; $21,000. What is the IRR (compounded annually) for this investment
Business
1 answer:
bearhunter [10]3 years ago
6 0

Answer: 1.89%

Explanation:

You can use Excel to find the IRR here:

Investment amount should be first as shown and should be in negative.

The cash flows will then follow each other by year.

Use the =IRR formula to select all the cells and the IRR will show.'

IRR here = 1.89%

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