Question
Datta Computer Systems is considering a project that has the following cash flow data. What is the project's IRR? Show your calculations, if any, and
Datta Computer Systems is considering a project that has the following cash flow data.
What is the project's IRR? Show your calculations, if any, and explain your answer.
Note that a project's projected IRR can be less than the WACC (and even negative), in which case it will be rejected.
| Year | 0 | 1 | 2 | 3 |
| Cash flows | $1,450 | $500 | $570 | $690 |
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Financial And Managerial Accounting
Authors: Susan F. Haka ,Joseph V. Carcello ,Jan R. Williams
18th Edition
1259922189, 978-1259922183
