Compute the IRR for the following project.

Compute the IRR for the following project. The initial cost is $10,000. The net cash flows are 3,800 for four years. The net salvage value is $2,000 when the project terminates. The cost of capital is 10%.
a. 13.91%
b. 18.91%
c. 23.91%
d. 25.91%

 

Solution