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Thorley Inc. is considering a project that has the following cash flow data. The project's IRR is _______ %. Show 2 decimals! Year 0 1 2 3 4 5 Cash Flows -$1,250 $325 $325 $325 $325 $325

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter26: Capital Investment Analysis

Section: Chapter Questions

Problem 4CMA

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Question

Thorley Inc. is considering a project that has the following cash flow data. The project's IRR is _______ %. Show 2 decimals!
Year 0 1 2 3 4 5
Cash Flows -$1,250 $325 $325 $325 $325 $325

Definition Definition Discount rate of a project wherein its net present value equals zero. Internal rate of return equates the present value of future cash flows with the initial investments. Internal rate of return helps to determine nominal cash flows.

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