Consider a project that requires an initial investment of


Consider a project that requires an initial investment of $5.2 million at time zero. The expected net cash inflows over the five-year life of the project are as follows: 

Year 1: $1.2 million 

Year 2: $1.4 million

Year 3: $1.6 million

Year 4: $1.8 million

Year 5: $2.0 million

What is the internal rate of return (IRR) for the project?

Select one:

a. 10.4%

b. 12.2%

c. 14.8%

d. 16.4%

e. none of the above

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Finance Basics: Consider a project that requires an initial investment of
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