Question
ABC Inc. is considering a project that has the following cash flow and WACC data. What is the project's IRR? Note that if a project's
ABC Inc. is considering a project that has the following cash flow and WACC data.
What is the project's IRR? Note that if a project's WACC>IRR, it should be rejected.
WACC: 6%
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
|---|---|---|---|---|---|---|
| Cash Flows | -$2000 | $500 | $500 | $500 | $300 | $300 |
Step by Step Solution
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Step: 1
To calculate the Internal Rate of Return IRR of the project we need to find the disco...
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College Mathematics For Business Economics, Life Sciences, And Social Sciences
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
14th Edition
0134674146, 978-0134674148
