Chasteen, Inc., is considering an investment with an initial cost of $145,000. The cash inflows generated by the project are estimated at $76,000 for the first two years and $30,000 for the following two years. What is the internal rate of return

Respuesta :

Answer:

21.29 percent

Explanation:

Chasteen, Inc.,

NPV = 0

= -$145,000 + $76,000 / (1 + IRR) + $76,000 / (1 + IRR)2+ $30,000 / (1 + IRR)3+$30,000 / (1 + IRR)4

IRR = 21.29 percent

Therefore the Internal rate of return is 21.29 percent