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2. A firm is considering investing in a project with the following cash flows: Points in time (yearly intervals) 0 1 2 3 4 Project
2. A firm is considering investing in a project with the following cash flows:
Pointsin time (yearly intervals) | 0 | 1 | 2 | 3 | 4 |
Project A | -180,000 | 50,000 | 60,000 | 70,000 | 80,000 |
cost of capital is 10 per cent.
Required:
a) Calculate the internal rateof return (IRR) (1.5 marks)
For project A: try 15% and 16%
b) Calculate the net present value (NPV) for each project. (1 mark)
so fast plz
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