Quantitative Methods Q51

51The 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:

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

Forgot your password?

I agree with the Terms.