Given the following annual net cash flows, determine the IRR to the nearest whole percent of a project with an initial outlay of $1,520.
Year Net Cash Flow
3 $ 500
I will provide two answers because it depends on the interpretation.
1. If cash flow starts to bring income in the year of initial outlay: 218.9%
2. [ If cash flow starts to bring income next year from the of initial outlay: 47.7%
Used IRR function in Excel. ]
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