Question
Blanchford Enterprises is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can
Blanchford Enterprises is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC (and even negative), in which case it willbe rejected.
Year: 0 1 2 3 4
Cash flows: -$1,000 $400 $400 $400 $400
a. 21.86%b. 23.01%c. 19.17%d. 20.56%e. 17.76%
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The Bank Credit Analysis Handbook
Authors: Jonathan Golin, Philippe Delhaise
2nd Edition
0470821574, 978-0470821572
