5. Consider a project with the following cash flows: C0 C1 C2 100 200 75 a. How...

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5. Consider a project with the following cash flows:

C0 C1 C2 100 200 75

a. How many internal rates of return does this project have?

b. Which of the following numbers is the project IRR:

(i) 50%; (ii) 12%; (iii) 5%; (iv) 50%?

c. The opportunity cost of capital is 20%. Is this an attractive project? Briefly explain.

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Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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