​(IRR of an uneven cash flow​ stream) Microwave Oven​ Programming, Inc. is considering the construction of a new plant. The plant will have an initial cash outlay of ​$ million​ (​ = ​$ ​million), and will produce cash flows of ​$ million at the end of year​ 1, ​$ million at the end of year​ 2, and ​$ million at the end of years 3 through 5. What is the internal rate of return on this new​ plant?

Explanation:

Here is the complete question used in answering this question

(IRR of uneven​ cash-flow stream​) Microwave Oven​ Programming, Inc. is considering the construction of a new plant. The plant will have an initial cash outlay of ​$12 ​million, and will produce cash flows of ​$4 million at the end of year​ 1, $ 5 million at the end of year​ 2, and ​$3 million at the end of years 3 through 5. What is the internal rate of return on this new​ plant? The internal rate of return on this new plant is __​%. ​(Round to two decimal​places.)

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator  

Cash flow in year 0 = $-12 ​million

Cash flow in year 1 = $4 ​million

Cash flow in year 2 = $5 ​million

Cash flow in year 3 = $3 ​million

Cash flow in year 4 = $3 ​million

Cash flow in year 5 = $3 ​million

IRR = 16.66%

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.