Problems with IRR A project has the following cash flows: Year Cash flow () 0 58,000 1
Question:
Problems with IRR A project has the following cash flows:
Year Cash flow (£)
0 58,000 1 –34,000 2 –45,000 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?
Sketch the NPV profile to help you with your answer.
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9780077178239
3rd Edition
Authors: David Hillier, Iain Clacher, Stephen A. Ross
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