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DeBarry Corporation makes an investment of $52,000 that yields the following cash flows: Year Cash Flow 1 $13,000 2 13,000 3 19,000 4 21,000 5
DeBarry Corporation makes an investment of $52,000 that yields the following cash flows:
Year | Cash Flow | |
1 | $13,000 | |
2 | 13,000 | |
3 | 19,000 | |
4 | 21,000 | |
5 | 23,000 | |
a. What is the present value with a 8 percent discount rate (cost of capital)? (Use a Financial calculator to arrive at the answers. Do not round intermediate calculations. Round the final answer to the nearest whole dollar.)
Net present value $
b. What is the IRR? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
IRR %
c. Would you make the same decision under both parts a and b?
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Yes
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No
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