Question
A company is investing $100,000 into a project. The projected cash flows from the project are as follows: Year 1: -10,000 Year 2: +20,000 Year
A company is investing $100,000 into a project.
The projected cash flows from the project are as follows:
Year 1: -10,000
Year 2: +20,000
Year 3: +60,000
Year 4: +90,000
The companys cost of capital is 8% compounded annually. The company also believes it can earn 6% compounded annually on any reinvested cash flows.
Calculate the NPV, IRR, and MIRR for the project.
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Fundamentals Of Financial Management
Authors: James C Van Horne
3rd Edition
0133393410, 978-0133393415
