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Internal rate of return: Compute the IRR for the following project cash flows: An initial outlay of $3,125,000 followed by annual cash flows of $565,325

Internal rate of return: Compute the IRR for the following project cash flows: An initial outlay of $3,125,000 followed by annual cash flows of $565,325 for the next eight years.

Please explain in excel, next step after cost of the capital. Thank you,

IRR Calculations


YEAR
0	565325
1	610551
2	659395.08
3	712146.6864
4	769118.4213
5	830647.895
6	897099.7266
7	968867.7047
8	1046377.121
	7059528.635

Cost of the capital
7059528.635/3125000	2.2590

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