A project costs Rs 96000 and is expected to generate cash inflows of Rs 48000 , Rs 42000 and RS 36000 at the end of the each year for next 3 years .calculate projects IRR?

Answer :


To calculate the Internal Rate of Return (IRR) for the project, we need to consider the initial investment and the cash inflows over the next three years. In this case, the initial investment is Rs 96,000, and the cash inflows at the end of each year are Rs 48,000, Rs 42,000, and Rs 36,000 respectively. By using a financial calculator or spreadsheet software, we can find that the IRR for this project is approximately 10.44%.

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