Question

The cost of the project is $600,000. You expect the project to make $1,500,000 in year 7 (CF of year 7 = $500,000, CF from year 1-6-0). Your cost of capital is 9% The IRR for this project equals

a.13.99%
b.12.94%
c.14.01%
d.15.85%

Answer 1

15.85% because it's 9% and then go to the time of year and then go to the time of the box and second