Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company's cost of capital is 20 percent. What is the internal rate of return on this project? (Round to the nearest percent.)

Principles of Accounting Volume 2
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ISBN:9781947172609
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Chapter11: Capital Budgeting Decisions
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Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years. The company's cost of capital is 20 percent. What is the internal rate of return on this project? (Round to the nearest percent.)

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IRR

It is a capital budgeting technique of the discounted cash flow that gives a rate of return that is being earned by the project. It is a rate at which an initial investment and the discounted cash inflows equals 0.

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