The internal rate of return is the discount rate that yields an NPV of zero.

Question 1:

Will the IRR for projects Y and Z be higher or lower than the discount rate of 8% used in the tables below to calculate net present value?

Question 2:

Which Project will have the higher IRR?

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Totals Amount invested et present value Year 1 Year 2 Year 3 $199,149 $499,149 $99,493 3134.331r $1 34,331r $132,993 $95348 $95.?48 $9.518 $93,329 $93,959 $49,991 $99,339 $91,439 $199929 $511955 .9259 .3513 .TQBB {$3Ul $213,955 $83,653 $82,35 $1635 Year 4 $133,449 $191,399 mm mm mm invested Net present value