Question

​Darrox, Inc. is considering a fourminusyear project that has an initial outlay or cost of​ $90,000. The future cash inflows from its project are​ $50,000, $30,000,​ $30,000, and​ $30,000 for years​ 1, 2, 3 and​ 4, respectively. Darrox uses the internal rate of return method to evaluate projects. What is the approximate IRR for this​ project?

Answer 1

22.8

Step-by-step explanation:

Internal rate of return (IRR) is the interest rate at which net present value of all cash flows becomes zero. It measure the profitability of the investment.

IRR of Current Project

IRR = 22.8%

Working for NPV is attached with this answer in Excel Format please find it.