310chapter16m7

The required investment now in the project is 72096

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Unformatted text preview: sh inflow from a project is \$20,000 over the next 5 years. The required investment now in the project is \$72,096. What is the internal rate of return on the project? a. 10% b. 12% c. 14% d. Cannot be determined Chapter 16 Module 7: IRR The expected annual net cash inflow from a project is \$20,000 over the next 5 years. The required investment now in the project is \$72,096. What is the internal rate of return on the project? a. 10% \$72,096 ÷ \$20,000 = 3.6048, b. 12% which is the present value factor c. 14% for an annuity over five years w determined d. Cannot be hen the interest rate is 12%....
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