Quantitative Methods Q60

60A project requires an initial outlay of $750,000. It is expected to produce cash flows of $200,000 in the first year, $300,000 in the second year, and $400,000 in the third year. The cost of capital for this project is 10%. What is the internal rate of return of the project?

Option : A
Explanation : Using a financial calculator, enter the following cash flows to compute IRR. CF0 = -750,000, CF1 = 200,000, CF2 = 300,000, CF3 = 400,000, CPT IRR = 8.65%.

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