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    Internal Rate of Return for Marielle Machinery Works

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    IRR. Marielle Machinery Works forecasts the following cash flows on a project under consideration. It uses the internal rate of return to accept or reject projects. Should this project be accepted if the required return is 12%?
    C 0= $-10,000, C 1=0, C2 = +$7,500, C 3= +$8,500

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    Chart of Net cash flows

    Year Cash ...

    Solution Summary

    This explains the computation of internal rate of return with the help of an example in an attached Excel file.