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What is the IRR of the following set of cash flows? Year Cash Flow 0 –$9,531 1 4,200 2 5,500 3 4,400

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter23A: Statement Of Cash Flows: The Direct Method

Section: Chapter Questions

Problem 2RQ

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What is the IRR of the following set of cash flows? Year Cash Flow 0 –$9,531 1 4,200 2 5,500 3 4,400

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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