# 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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#### 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.

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