9-3A. (IRR calculation) Detennine the internal rate of return to the nearest percent on the following projects:
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9-3A. (IRR calculation) Detennine the internal rate of return to the nearest percent on the following projects:
a. An initial outlay of $10,000 resulting in a free cash flow of $2,000 at the end of year 1,
$5,000 at the end ofyear 2, and $8,000 at the end of year 3
b. An initial outlay of $10,000 resulting in a free cash flow of $8,000 at the end of year 1,
$5,000 at the end of year 2, and $2,000 at the end of year 3
c. An initial outlay of $10,000 resulting in a free cash flow of $2,000 at the end of years 1 through 5 and $5,000 at the end of year 6
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Related Book For
Financial Management Principles And Applications
ISBN: 9780131450653
10th Edition
Authors: Arthur J. Keown, J. William Petty, John D. Martin, Jr. Scott, David F.
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