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  1. Business
  2. Finance
  3. Capital Budgeting
  4. Capital Budgeting Ratios
  5. Internal Rate of Return (IRR)
  6. 34905

How to calculate IRR for a stream of cash flows

What is the rate of return on an investment of $16,278 if the company expects to receive $3,000 per year for the next 10 years _______

18 percent, 13 percent, 8 percent, or 3 percent

I believe the answer isn't given - please advise answer & show work - thanks!!!

Solution Preview

The rate of retrun is 13%. You have to calculate the IRR of the stream of cash flow as below
0 1 2 3 4 ...

Solution Summary

The solution explains how to calculate the IRR given a stream of cash flows

$2.19

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