Mathematics · Financial Mathematics
A machine has an initial investment cost of $60,000 at time 0. The present values of the expected net cash inflows at different discount rates are given below: - At 10%: $64,600 - At 15%: $58,200 - At 20%: $52,100 What is the internal rate of return (IRR) of this investment?
- 1Over 20%
- 2Between 15% and 20%
- 3Between 10% and 15%✓
- 4Below 10%
Correct answer
Between 10% and 15%
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