Bell Hound Financial is considering increasing its insurance product offerings they estimate that the project will cost $79,131 to be

Question:

Bell Hound Financial is considering increasing its insurance product offerings they estimate that the project will cost $79,131 to be paid at the inception of the project. They estimate that the project will yield cash flows of $10,662 in 2 years, $25,465 in 6 years, $33,471 in 13 years, and $55,221 in 21 years. Find the Internal rate of return for this project assuming interest is compounded annually.

For your consideration:

How would you do this problem if interest was compounded quarterly?

Expert Answer:

Answer rating: 100% (QA)

To calculate the Internal Rate of Return IRR for the project we need to find the discount rate that makes the present value of the project s cash flow

View the full answer