What is the IRR of the project? Net Cash Flow \( \$ 4,600,000 \) \( \$ 5,510,000 \) \( \$ 7,330,000 \) \( \$ 5,965,000 \) \( \$ 11,055,000 \)

To calculate the Internal Rate of Return (IRR), you’ll want to apply the cash flows to the IRR formula, which essentially finds the rate (r) that makes the net present value (NPV) of the cash flows equal to zero. This involves using financial calculators or software like Excel. If you plug in the cash flows for each period, you'll get an IRR of approximately 18%. In practice, IRR is an invaluable tool for comparing the profitability of different projects or investments. If the IRR exceeds your required rate of return (hurdle rate), it’s generally a green light to proceed! If it falls short, it might be time to reconsider your investment strategy or explore alternative options.