Question
2. Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is 10 percent.
2. Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is 10 percent.
Year Expected Net Cash Flow
0 ($600,000)
1 400,000
2 400,000
3 400,000
What is the projects IRR?
a. 18.5 percent
b. 19.9 percent
c. 20.4 percent
d. 21.8 percent
*e. 44.6 percent
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
