2. 26. Problems with IRR [LO 9.5] A project has the following cash flows 1. What is...

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2. 26.

Problems with IRR [LO 9.5] A project has the following cash flows

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1. What is the IRR for this project? If the required return is 12 per cent, 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 per cent? 24 per cent? What is going on here? Consider and describe how the NPV profile changes to help you with your answer.

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Fundamentals Of Corporate Finance

ISBN: 9781743768051

8th Edition

Authors: Stephen A. Ross, Rowan Trayler, Charles Koh, Gerhard Hambusch, Kristoffer Glover, Randolph W. Westerfield, Bradford D. Jordan

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