Question
A project requiring $45.5 million initial investments at 8% cost of capital is being considered. The expected cash flows for the 5 periods are 10.5m,
A project requiring $45.5 million initial investments at 8% cost of capital is being considered. The expected cash flows for the 5 periods are 10.5m, 9.45m, 14.67m, 11.35m and 8.9m dollars . Calculate the IRR of the project using the trial and error method and show if the project is acceptable or not.
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Investments
Authors: Zvi Bodie
12th Edition
1260819426, 9781260819427
