Question
A firm with a 9.5 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are
A firm with a 9.5 percent cost of capital is considering a project for this years capital budget. The projects expected after-tax cash flows are as follows:
| Year: | 0 | 1 | 2 | 3 | 4 |
| Cash flow: | -$14,000 | $5,900 | $5,200 | $6,900 | $6,600 |
Calculate the projects internal rate of return (IRR).
| a. | 75.71% | |
| b. | 39.79% | |
| c. | 31.32% | |
| d. | 26.10% | |
| e. | 15.13% |
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee
1st Edition
1607962233, 978-1607962236
