Question
A company is looking to acquire additional outlets for increasing storage needs. The project's II (initial investment) and future cash flows would look as follows:
A company is looking to acquire additional outlets for increasing storage needs. The project's II (initial investment) and future cash flows would look as follows:
| Initial Investment | 2845603 |
| Cash Flow Year 1 | 596703 |
| Cash Flow Year 2 | 547290 |
| Cash Flow Year 3 | 605832 |
| Cash Flow Year 4 | 749505 |
| Cash Flow Year 5 | 802384 |
Considering that the discount rate is 6%, what would the IRR of the project be, and would you advise the company to go ahead with it ?
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Finance for Non Financial Managers
Authors: Pierre Bergeron
7th edition
176530835, 978-0176530839
