Determine the IRR on the following projects: a. An initial outlay of $ 10,000 resulting in a

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Determine the IRR on the following projects:
a. An initial outlay of $ 10,000 resulting in a single free cash flow of $ 17,182 after 8 years
b. An initial outlay of $ 10,000 resulting in a single free cash flow of $ 48,077 after 10 years
c. An initial outlay of $ 10,000 resulting in a single free cash flow of $ 114,943 after 20 years
d. An initial outlay of $ 10,000 resulting in a single free cash flow of $ 13,680 after 3 years
Free Cash Flow
Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. Unlike earnings or net income, free cash flow is a measure of profitability that excludes the...
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Foundations of Finance The Logic and Practice of Financial Management

ISBN: 978-0132994873

8th edition

Authors: Arthur J. Keown, John D. Martin, J. William Petty

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