Problem 9.27 Compute the IRR on the following cash flow streems tial n es r ert

Question

Problem 9.27 Compute the IRR on the following cash flow streems tial n es r ert of S 19,289 followed by 8 single cash f?of S32,190 in year 6 (Round intermediate calculations to 4 decimal places, e g. I 2512 and final answer to 2 decimal places e IRR b. An initial investment of $1,215,946 followed by a single cash fnow of $1,884,100 in year 4. (Round intermediate caleulations to 4 decimal e.g. 15.25%) places, ag. 1.2512 and final answer to 2 decimal place IRR E An initiel investment of s2,271,144 telowed by cash fhows of $1, 971,500 and 1,o51,100 in years 2 and 4, respectively, (Round answer to 2 decimal places, .g. 15.25) TRR Click if you would like to Show Work for this question

Explanation / Answer

Below formual would be used :

IRR basically is the rate which make NPV = 0

NPV = Present Values of future Cash flows - Initial Investment.

a. IRR would be around 9%

b, IRR would be around 11.6%

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