Respuesta :
The Internal Rate of Return (IRR) of Project FDI is 16.1%.
What does IRR means?
Internal Rate of Return (IRR) is a financial metric used to calculate the rate of return on an investment. It is calculated as the discount rate that equals the present value of all cash flows from a project or investment. In a discounted cash flow analysis, IRR is a discount rate that causes the net present value (NPV) of all cash flows to equal zero.
What does NPV mean?
NVP stands for Net Value Proposition. It is a business term used to describe the value that a product or service provides to a customer or client. It is used to evaluate the cost and benefit of a product or service, as well as its perceived value in the marketplace.
Solution to find IRR:
We can calculate the IRR by using the following formula:
IRR = -80,500 + 32,300/(1+IRR) + 36,400/(1+IRR)^2 + 30,000/(1+IRR)^3
Solving for IRR, we get IRR = 16.1%.
The Internal Rate of Return (IRR) of Project FDI is 16.1%.
To know more about IRR,
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