Question
1) You are evaluating this possible investment by using the IRR. If your required return is 18 percent, what is the IRR? Round your answer
1) You are evaluating this possible investment by using the IRR. If your required return is 18 percent, what is the IRR? Round your answer to two decimals.
CASH FLOW
Year 0: -$130,000
Year 1: 68,000
Year 2: 71,000
Year 3: 54,000
2) You are evaluating this possible investment by using the NPV. If your required return is 18 percent, what is the NPV? Should you go through with this investment? Round your answer to two decimals.
CASH FLOW
Year 0: -$130,000
Year 1: 68,000
Year 2: 71,000
Year 3: 54,00
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 Calculating IRR To calculate the Internal Rate of Return IRR we need to find the discount rate at ...
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Step: 2
Step: 3
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Principles of Finance
Authors: Scott Besley, Eugene F. Brigham
6th edition
9781305178045, 1285429648, 1305178041, 978-1285429649
