Question
A project has expected cash flows of -$1,000, $2,500, and -$1,540 in years 0, 1, and 2, respectively. The cost of capital is 15%. a.
A project has expected cash flows of -$1,000, $2,500, and -$1,540 in years 0, 1, and 2, respectively. The cost of capital is 15%.
a. Construct an NPV profile using interest rates of 0, 10, 20, 30, 40, 50, and 60%.
b. What is the IRR of the project?
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Finance Theory And Practice
Authors: Anne Marie Ward
3rd Edition
1908199482, 978-1908199485
