Calculate the internal rate of return on the following projects:

a. Initial outlay of $60,500 with an after-tax cash flow of $11,897 per year for eight years.
b. Initial outlay of $647,000 with an after-tax cash flow of $118,000 per year for ten years.
c. Initial outlay of $25,400 with an after-tax cash flow $11,788 per year for three years.


a. IRR = 11.33%
b. IRR = 12.74%
c. IRR = 18571%

Business

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