Q. 22. Find out the project to be selected through IRR out of the following three mutually exclusive projects that needs an initial cash outlay of Rs.2,000,000 and that can be borrowed @ 16% rate of interest. The project life is 5 Years. The project has the following estimated cash inflows at the end of each year for five years.

Year

Cash Flows Project A

Cash Flows Project B

Cash Flows Project C

0

-2000000

-2000000

-2000000

1

400000

800000

600000

2

500000

700000

600000

3

600000

600000

600000

4

700000

500000

600000

5

800000

400000

600000