Question
(Calculating IRR, payback, and a missing cash flow) The Merriweather Printing Company is trying to decide on the merits of constructing a new publishing facility.
(Calculating IRR, payback, and a missing cash flow) The Merriweather Printing Company is trying to decide on the merits of constructing a new publishing facility. The project is expected to provide a series of positive cash flows for each of the next four years. The estimated cash flows associated with this project are as follows:
| Year | Project Cash Flow |
| 0 | ? |
| 1 | $ 750,000 |
| 2 | 360,000 |
| 3 | 310,000 |
| 4 | 450,000 |
If you know that the project has a regular payback of 2.9 years, what is the project's IRR?
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Finance for Executives Managing for Value Creation
Authors: Gabriel Hawawini, Claude Viallet
4th edition
