Question
A projects net present value is +5,000 when its cash flows are discounted at 11%; and minus 1,500 when its cash flows are discounted at
A projects net present value is +5,000 when its cash flows are discounted at 11%; and minus 1,500 when its cash flows are discounted at 15%. Based on these data and using the method of linear interpolation the best estimate of the projects internal rate of return is closest to:
a. 19% b. 14% c. 11% d. 8%
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Financial Management Theory And Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
10th Edition
0030329922, 9780030329920
