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Blinding Light Co. has a project available with the following cash flows: Year Cash Flow 0 −$33,790 1 8,210 2 9,890 3 14,120 4 15,930 5 10,820 What is the project's IRR? Multiple Choice 18.14% 21.83% 20.99% 22.39% 20.15%

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Answer: 20.15%

Explanation:

The IRR is the discount rate that makes brings the Net Present Value to zero.

It can be solved for by various means including using Excel as shown in the attached file.

Year 0      -33790

Year 1        8,210

Year 2       9,890

Year 3       14,120

Year 4       15,930

Year 5       10,820

= IRR (-33,790 , 8,210 , 9,890 , 14,120 , 15,930 , 10,820 )

= 20.15%

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