Question
Consider the investment project cash flows given below n CF 0 -220000 1 94000 2 144000 3 72000 a) Find the IRR for this investment.
Consider the investment project cash flows given below
| n | CF |
| 0 | -220000 |
| 1 | 94000 |
| 2 | 144000 |
| 3 | 72000 |
a) Find the IRR for this investment.
b) Plot the present worth of the cash flow as a function of the interest rate, i.e., consider interest rates of 5%,10%,15%,, 30%. Identify the interest rate at which the present worth is zero.
c) Assuming a MARR of 15%, is this investment acceptable?
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ISE Managerial Accounting For Managers
Authors: Eric Noreen, Peter C. Brewer, Ray H. Garrison
5th Edition
1260570010, 9781260570014
