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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

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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