Consider the following cash flows:YearCash Flow0$32,50012313,30018,40010,700What is the IRR of the cash flows? (Do not round intermediate calculations and enteryour answer as a percent rounded to 2 decimal places, e.g., 32.16.)Internal rate of return%

The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Answered: Year Cash Flow 0123 $32,500 13,300…

Year Cash Flow 0123 $32,500 13,300 18,400 10,700 What is the IRR of the cash flows? (Do not ro your answer as a percent rounded to 2 decim

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.12: Uneven, Or Irregular, Cash Flows

Problem 3ST

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Concept explainers

Cash Flow Statement Analysis

A company's cash flow is the movement of its cash inflows and cash outflows. A cash flow statement is prepared to determine changes in an organization's cash position. A cash flow statement shows how much money was generated and spent on the business during the fiscal year. The cash flow analysis is a method of analyzing an organization's investing, financing, and operating activities. A cash flow statement reveals an organization's liquidity and solvency, as well as its ability to change cash flows in the future. It eliminates the other effects of accounting methods by improving the comparability of different organizations' operational performance.

Question

Consider the following cash flows:
Year
Cash Flow
0
$32,500
123
13,300
18,400
10,700
What is the IRR of the cash flows? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Internal rate of return
%

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