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Calculate the irr of the previous project

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Reference no: EM132945208

We know the following data of an investment that the company has made: An initial disbursement of € 2,000,000 and generates the collections and payments in the successive years of its duration that are shown in the following table:

Years         Collection (€)       Payments (€)
1 Year       4.500.000              5.500.000
2 Year        6.000.000             4.000.000
3 Year        3.800.000          4.500.000
4 Year         5.000.000           3.200.000

Problem 1: Calculate the IRR of the previous project. Justify for what type of discount this investment will be made.

Reference no: EM132945208

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