A project requiring an initial outlay of $2,200,000 at t = 0 is expected to provide the

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A project requiring an initial outlay of $2,200,000 at t = 0 is expected to provide the following array of annual cash flows starting at t = 2: $400,000, $600,000, $800,000, $1,000,000. Using a discount rate of 12 percent,

a. Calculate the net present value of the project using a calculator.

b. Calculate the net present value of the project using a spreadsheet. Check that you got the same result as with the calculator.

c. Without performing any additional calculations, is the IRR of the project larger or smaller than 12 percent?

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Practical Finance For Operations And Supply Chain Management

ISBN: 9780262043595

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Authors: Alejandro Serrano, Spyros D. Lekkakos, James B. Rice

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Question Posted: Apr 28, 2024 03:01 AM

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A project requiring an initial outlay of $2,200,000 at t = 0 is expected to provide the

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Practical Finance For Operations And Supply Chain Management

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