Question
A project which has an initial cost of $9,191 will generate the following net cash flows at the end of each year: Year 1: +$4,000
Year 1: +$4,000
Year 2: +$3,000
Year 3: +$2,000
Year 4: +$2,000
It is known that this project has a positive NPV at the company's cost of capital of 8%. Calculate IRR of this project.
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IRR R1 NPV1R2 R1 NPV1 NPV2 where R1 and R2 are randomly selected discount rates NPV1 ...Get Instant Access to Expert-Tailored Solutions
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Get StartedRecommended Textbook for
Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
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