Summer time tyme, inc. has money obtainable

Assuming a reduction charge of 8%, the undertaking’s web money flows for years 0-3 are as follows:

Yr 0: -$10,000 (Preliminary Funding)

Yr 1: $2,800

Yr 2: $4,200

Yr 3: $6,000

The Inner Price of Return (IRR) on this undertaking can be 13%. That is calculated by discovering the low cost charge that producess a web current worth of zero. Due to this fact on this instance 13% can be the IRR.