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Inatech is contemplating to undertake Project B and perform a financial analysis to determine whether it is financially lucrative. Project B have the cash flows
Inatech is contemplating to undertake Project B and perform a financial analysis to determine whether it is financially lucrative. Project B have the cash flows as shown below and Inatech uses a required rate of return of 20%. Compute theinternal rate of returnfor the project to determine whether it is worth undertaking.
Year | B |
0 | -$400,000 |
1 | $80,000 |
2 | $120,000 |
3 | $160,000 |
4 | $160,000 |
5 | $800,000 |
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