Exercise

Internal Rate of Return

Now that you have the cash flow projections ready to go for each project, you want to compare the internal rate of return (IRR) of each project to help you decide which project would be most beneficial for your company in terms of yield (rate of return). In this exercise, you will calculate the internal rate of return for each project using np.irr(values).

The cash flows for projects 1 and 2 are available as cf_project1 and cf_project2.

Instructions

100 XP

Set the internal rate of return for Project 1 equal to irr_project1.
Set the internal rate of return for Project 2 equal to irr_project2.

Take Hint (-30 XP)