Answer:

IRR of the project is = 13.21%

Working notes for the above answer is as under

We have been provided with the information that,

ABC Corp is considering a project

that has the following cash flow data:

CF0= ($1000);

CF1= $425;

CF2= $425;

CF3= $425

IRR

=0 = -1000+425/(1+r)1 +425/(1+r)2+425 (1+r)3

Solving this equation by trial and error method or by using Financial calculator, you will get

IRR =13.21%