What is the IRR for project​ M?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Internal rate of return and modified internal rate of
return.
Quark Industries has three potential​ projects, all with an initial cost of
​$1,900,000.
Given the discount rate and the future cash flow of each​ project, what are the IRRs and MIRRs of the three projects for Quark​ Industries?
 
  Cash Flow
Project M
Project N
Project O
 
  Year 1
​ $500,000
 
​$600,000
 
​$1,000,000
 
  Year 2
​$500,000
 
​$600,000
 
​$800,000
 
  Year 3
​$500,000
 
​$600,000
 
​$600,000
 
  Year 4
​$500,000
 
​$600,000
 
​$400,000
 
  Year 5
​$500,000
 
​$600,000
 
​$200,000
 
  Discount rate
9​%
13​%
16​%
What is the IRR for project​ M?
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