Quantitative Methods Q51

0. The Chinese government wishes to invest in a project that requires an initial investment of $18 million.The project is expected to produce positive cash flows of $5 million for the first three years, and $3 million for the next two years. Given that the required rate of return is 10 percent, the approximate internal rate of return (IRR) of this project is closest to:

Answer
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Option : B
Explanation : Enter the given cash flows in a financial calculator: CF0 = -18 million, CF1 = 5 million, CF2 = 5 million

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