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An investment project has the following cash flows: CF0 = -1,000,000; CF1 - CF5 = 250,000 each. If the required rate of return is 10%:
An investment project has the following cash flows: CF0 = -1,000,000; CF1 - CF5 = 250,000 each. If the required rate of return is 10%:
- What is the NPV of the project? What decision would be reached?
- What is the IRR (internal rate of return) of the project? What decision would be reached?
- How are the above two decisions related?
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
