# What is the IRR of the following set of cash flows?

What is the IRR of the following set of cash flows?

Year 0 cash flow is -$2400;

Year 1 cash flow is $640;

Year 2 cash flow is $800;

Year 3 cash flow is $2000.

#### Solution Preview

... 0 (1 + IRR)t

640 800 2,000

= - 2,400 + --------------- + --------------- + ---------------

(1 + IRR)1 (1 + IRR)2 (1 + IRR)3

By solving ...