Year Project B 0 ($95000) 1 7500 2 15000 3 22500 4 27500 5 42000 When evaluating the following project, what is its IRR? 7.2% 5.2% 3.9% 8.6%
Added by Domingo S.
Step 1
Year 0: PV = -95000 / (1 + r)^0 = -95000 Year 1: PV = 7500 / (1 + r)^1 = 7500 / (1 + r) Year 2: PV = 15000 / (1 + r)^2 = 15000 / (1 + r)^2 Year 3: PV = 22500 / (1 + r)^3 = 22500 / (1 + r)^3 Year 4: PV = 27500 / (1 + r)^4 = 27500 / (1 + r)^4 Year 5: PV = 42000 / Show more…
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