A project has the following cash flows: Year Cash Flow 0$42,000 121,000 232,000 What is the IRR
Question:
A project has the following cash flows:
Year Cash Flow
0$42,000
121,000
232,000
What is the IRR for this project? If the required return is 12 percent, should the firm accept the project? What is the NPV of this project? What is the NPV of the project if the required return is 0 percent? 24 percent? What is going on here? Sketch the NPV profile to help you with your answer.
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Input area Annual cash flows Year 0 42000 Year 1 21000 Year 2 32000 Required return 12 Required ret...View the full answer
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Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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