Calculate the internal rate of return (IRR)of following two projects
Question: Calculate the internal rate of return (IRR)…
Calculate the internal rate of return of following two projects. Consider the following two projects:
Year 0 year 1 year 2 year 3 year 4
Project cash flow cash flow cash flow cash flow cash flow
A -100 40 55 60 N/A
B -73 30 30 30 30
And discount rate is .15 for each project.
The internal rate of return IRR for project A is closet to
- 7%
- 6%
- 7%
- 9%