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Internal Rate of Return

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You're analyzing a project and have completed this info:

Year...............Cash Flow
0....................$-158,000
1....................$34,500
2....................78,500
3....................92,000

Required payback period 2.5 years
Required return 12%

Should the proposed project be accepted based on its internal rate of return?

a. Yes; IRR = 12.28 %
b. Yes; IRR=11.79%
c. No; IRR=12.28%
d. No; IRR=11.79%

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The solution analyse a project using internal rate of return.

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