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XYZ is evaluating a project that would require an initial investment of $74,300.00 today. The project is expected to produce annual cash flows of $8,700.00
XYZ is evaluating a project that would require an initial investment of $74,300.00 today. The project is expected to produce annual cash flows of $8,700.00 each year forever with the first annual cash flow expected in 1 year. The NPV of the project is $7,900.00. What is the IRR of the project?
10.58% (plus or minus 0.02 percentage points) | ||
10.63% (plus or minus 0.02 percentage points) | ||
13.10% (plus or minus 0.02 percentage points) | ||
11.71% (plus or minus 0.02 percentage points) | ||
None of the above is within 0.02 percentage points of the correct answer |
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