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Lets assume youre a Financial Analyst at Amazon after graduating from APU. The Amazon, Inc. is assessing the profitability of Project X. Project X requires
Lets assume youre a Financial Analyst at Amazon after graduating from APU. The Amazon, Inc. is assessing the profitability of Project X. Project X requires $250,000 in funding and is expected to generate $100,000 in after-tax cash flows in the first year and grow by $50,000 for each of the next five years.
| 2022 (Current) | 2023 | 2024 | 2025 | 2026 | 2027 |
Initial Investment | -350,000 |
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After-Tax Cash Flow |
| 100,000 | 150,000 | 200,000 | 250,000 | 200,000 |
What is the Internal Rate of Return (IRR) of the project? You can use an EXCEL function, IRR(values).
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