That is it will return 2100 at the end of the second year


A firm has invested $100,000 in a project. The project will return cash of $2,000 at the end of the first year, and every year in the future with a growth rate of 5%. That is, it will return $2,100 at the end of the second year, $2,205 at the end of the third year and so on.

What is the IRR for the project?

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Finance Basics: That is it will return 2100 at the end of the second year
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