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    How to calculate IRR for a stream of cash flows

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    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!!!

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    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