Calculate internal rate of return for proposed investment

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Mr. A is considering investing $250,000 in a business.

  • The cost of capital for the investment is 13%.

Following cash flows are expected from the investment:

Year                     Amount

2015                  (2,50,000)

2016                      50,000

2017                      1,00,000

2018                       2,00,000

Question 1: Calculate the Internal Rate of Return for the proposed investment and interpret your answer.

Reference no: EM132497229

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