alleryStart learning →Flows are -123,400, then 36,200, 54,800 and 48,100 over three years. IRR is about:
A7.96%
B6.96%
C4.96%
D5.96%
Answer & Solution
Correct answer: D. 5.96%
At 5.96% the three inflows discount to about 34,164, 48,810 and 40,431, which together recover the 123,400 outlay.
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