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You have 3 projects with the following cash flows: Year Project 1 Project 2 Project 3 0 - $149 - 824 22 1 $18
You have 3 projects with the following cash flows: Year Project 1 Project 2 Project 3 0 - $149 - 824 22 1 $18 0 41 2 $41 0 59 a. For which of these projects is the IRR rule reliable? b. Estimate the IRR for each project (to the nearest 1%). c. What is the NPV of each project if the cost of capital is 5%? 20%? 50%? 3 $61 6,992 81 4 $78 - 6,496 - 246
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a IRR rule is reliable for Project 1 Unless all of the negative cash flow of the project precedes positive ones b Computation of IRRs using excel N 15 ...
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
6th Canadian edition
1259024962, 978-1259024962
