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Calculate the closest irr from the options

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Reference no: EM132930380

Problem 1: Hinkley wants to invest $5,000,000 in a project. He can earn $800,000 in the first year. He can earn $1,500,000 in the second year. After that, the return generated will increase by 5% each year (over the preceding year) until year 5. Calculate the closest IRR from the options given below.

A. 4%
B. 12%
C. 8%
D. 19%

Reference no: EM132930380

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