Thompson Stores is considering a project that has the following cash flow data. What is the project's IRR? Year Cash Flow 0 ($1,000) 1 $300 2 $295 3 $290 4 $285 5 $270a. 11.16%.b. 12.40%.c. 13.78%.d. 15.16%.e. 16.68%.

Respuesta :

Answer: c. 13.78%

Explanation:

The Internal Rate of Return(IRR) is the discount rate that brings the Net Present Value (NPV) to zero.

It can be calculated using excel amongst other methods.

= IRR (-1000,300,295,290,285,270)

= 13.78%

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