Investment of $732000 will generate equal annual inflows of $146400 in perpetuity.
If the first inflow from the investment is a year after the initial investment, what is the IRR of the project?
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IRR
11y ago#1The discount factor for a perpetuity is 1/r , where r is the rate of interest.
So for a NPV of zero, 146400 / r = 732000
So IRR = r = 0.2, or 20%
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