Solved: Irr for the project-investing in a start up project, Finance Basics

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Irr for the project-investing in a start up project

Question:

You are considering investing in a start up project at a cost of $100,000. You expect the project to return $500,000 to you in seven years. Given the risk of this project, your cost of capital is 20%.

The IRR for this project is closest to:

A. 18.95%
B. 15.60%
C. 25.85%
D. 20.00%

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Finance Basics: Irr for the project-investing in a start up project

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