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

Question

Business

Janessa Wilkerson

10 January, 20:03

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

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India Ellison · Answer 1

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