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    What is the IRR of the following set of cash flows?

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    What is the IRR of the following set of cash flows?

    Year 0 cash flow is -$2400;
    Year 1 cash flow is $640;
    Year 2 cash flow is $800;
    Year 3 cash flow is $2000.

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    https://brainmass.com/business/internal-rate-of-return/what-is-the-irr-of-the-following-set-of-cash-flows-2759

    Solution Preview

    Pls refer to attached

    IRR is defined as "the rate which will discount a set of cashflows such that their NPV will be zero"

    Formula:

    n CFt
    0 =  -------------------
    t ...

    Solution Summary

    The solution first discloses the formulas and then shows how to solve them using either Excel of a financial calculator.

    $2.19

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