Chapter 5, Problem 6QAP

Summary Introduction

Adequate information:

Year	Project A	Project B
0	-7300	-4390
1	3940	2170
2	3450	2210
3	2480	1730

Introduction: The term internal rate of return refers to the rate where the NPV brings down to zero. In other words, if IRR is greater than the project’s required rate of return then the project is generally accepted by the company else the project is rejected.

To calculate: The IRR of the project to check its viability for acceptance.