Uses the internal rate of return method to evaluate projects

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Reference no: EM13911016

Flynn, Inc. is considering a four-year project that has an initial outlay or cost of $80,000. The future cash inflows from its project are $40,000, $40,000, $30,000, and $30,000 for years 1, 2, 3 and 4, respectively. Flynn uses the internal rate of return method to evaluate projects. What is the approximate IRR for this project?

The IRR is about 24.55%.

The IRR is about 28.89%.

The IRR is less than 12%.

The IRR is between 12% and 20%.

Reference no: EM13911016

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