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1. 2. 3. Stone Sour, Inc., has a project with the following cash flows: Year Cash Flow 0 $28,600 1 2 3 12,600 15,600 11,600
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Stone Sour, Inc., has a project with the following cash flows: Year Cash Flow 0 $28,600 1 2 3 12,600 15,600 11,600 The required return is 14 percent. What is the IRR for this project? (Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)) IRR % Compute the internal rate of return for the cash flows of the following two projects (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16)); Year Project A Project B 0 -$ 7,300 54,900 1 2,800 1,600 2 3,600 3,300 3 2,400 2,000 Internal rate of return % Project A Project B % An investment project costs $10,000 and has annual cash flows of $2,840 for six years. What is the discounted payback period if the discount rate is 0 percent? (Enter O if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)) Discounted payback period 2.48 years What is the discounted payback period if the discount rate is 5 percent? (Enter O if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)) Discounted payback period 3.97 years What is the discounted payback period if the discount rate is 20 percent? (Enter O if the project never pays back. Do not round intermediate calculations and round your answer to 2 decimal places. (e.g., 32.16)) Discounted payback period 2.48 yearsStep by Step Solution
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