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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 | $780,000 |
2 | 380,000 |
3 | 320,000 |
4 | 460,000 |
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If you know that the project has a regular payback of
2.1
years, what is the project's IRR? Step by Step Solution
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