What is the IRR

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Wildhorse Specialties just purchased inventory-management computer software at a cost of $1,482,950. Cost savings from the investment over the next six years will produce the following cash flow stream: $194,340, $278,240, $362,600, $597,250, $707,320, and $581,740. What is the payback period on this investment?

Management of Brian Lee, a confectioner, is considering purchasing a new jelly bean-making machine at a cost of $322,032. They project that the cash flows from this investment will be $93,040 for the next seven years. If the appropriate discount rate is 14 percent, what is the IRR that Brian Lee management can expect on this project?

Reference no: EM133013822

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