Answer to Question #208102 in Financial Math for Beauty Magadlela

Question

An investment with an initial outlay of R500 000 generates five successive annual cash inflows of R75 000, R190 000, R40 000, R150 000 and R180 000 respectively. The internal rate of return (IRR) is

[1] 7,78%.

[2] 27,0%.

[3] 9,48%.

[4] 21,3%.

[5] none of the above.

Answer 1

(5)none of the above.this is because to find the IRR , you need to work out the NVP FIRST which is impossible since we don't have the percentages.