What is the IRR of the following set of cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Year 0 1 2 3 IRR Cash Flow -$ 16,900 7,600 8,900 7,400 %

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 9MCQ: Refer to the information for Cornett Company above. What amount should Cornett report on its...
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What is the IRR of the following set of cash flows? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Year
0
-~3
1
2
IRR
Cash Flow
-$ 16,900
7,600
8,900
7,400
%
Transcribed Image Text:What is the IRR of the following set of cash flows? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Year 0 -~3 1 2 IRR Cash Flow -$ 16,900 7,600 8,900 7,400 %
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Any project/investment's profitability and feasibility are accessed via a process recognized as capital budgeting. It allows the investor to decide on the project's acceptance or rejection. There are multiple techniques employed for capital budgeting. The internal return rate is one of them. It highlights the discount rate at which the project's cash inflow's present worth is equivalent to the initial investment.

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