Question
DeBarry Corporation makes an investment of $50,000 that yields the following cash flows: Year Cash Flow 1 $ 10,000 2 10,000 3 16,000 4 18,000
DeBarry Corporation makes an investment of $50,000 that yields the following cash flows:
Year | Cash Flow |
1 | $ 10,000 |
2 | 10,000 |
3 | 16,000 |
4 | 18,000 |
5 | 20,000 |
a. What is the present value with a 9 percent discount rate (cost of capital)?
b. What is the IRR?
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
7th Edition
978-0-538-4527, 0-538-45274-9, 978-1133161646
