29. Multiple IRR. Consider the following cash flows: (LO2) a. Confirm that one internal rate of return

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29. Multiple IRR. Consider the following cash flows: (LO2)

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a. Confirm that one internal rate of return on this project is (a shade above) 7%, and that the other is (a shade below) 34%.

b. Is the project attractive if the discount rate is 5%?

c. What if it is 20%? 40%?

d. Why is the project attractive at midrange discount rates but not at very high or very low rates?

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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Question Posted: Jul 31, 2024 11:01 AM

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29. Multiple IRR. Consider the following cash flows: (LO2) a. Confirm that one internal rate of return

Question:

Co C C C3 CA -$22 +$20 + $20 + $20 - $40

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Fundamentals Of Corporate Finance

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