Question
A capital project has the following cash flow: Cash outflow of (in $millions) of $100 in 2012 to buy and install equipment. Cash inflows, after-tax
A capital project has the following cash flow:
Cash outflow of (in $millions) of $100 in 2012 to buy and install equipment. Cash inflows, after-tax of $30 in 2016; $40 in 2014 and 2015; $30 in 2013 and the after-tax proceeds of selling the equipment for $20 in 2017.
What is the project's IRR (closest to)?
Note: Do no use Excel formula.
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Fundamentals Of Corporate Finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
5th Edition
1119795435, 978-1119795438
