What is the projects irr, You have now been tasked with

What is the projects irr

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Reference no: EM13257667

Capital Budgeting for a New Machine

A few months have now passed and Aero Plain, Inc. is considering the purchase on a new machine that will increase the production of a special component significantly. The anticipated cash flows for the project are as follows:

Year 1 $950,000
Year 2 $1,100,000
Year 3 $1,300,000
Year 4 $1,400,000

You have now been tasked with providing a recommendation for the project based on the results of a Net Present Value Analysis. Assuming that the required rate of return is 15% and the initial cost of the machine is $3,500,000.

What is the project's IRR? Show your calculations.

Reference no: EM13257667

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