Question
For each project in the table calculate the IRR. Then indicate the maximum cost of capital the firm could have and still find the projects
For each project in the table calculate the IRR.
Then indicate the maximum cost of capital the firm could have and still find the projects IRR acceptable. show your work
| Project A | Project B | Project C | |
| Initial investment | $100,000 | $500,000 | $250,000 |
| Cash inflows | |||
| Year | 1 | 2 | 3 |
| 1 | $20,000 | $160,000 | $125,000 |
| 2 | $25,000 | $160,000 | $100,000 |
| 3 | $30,000 | $160,000 | $75,000 |
| 4 | $35,000 | $160,000 | $50,000 |
| 5 | $40,000 | ||
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Basic Business Statistics Concepts And Applications
Authors: Mark L. Berenson, David M. Levine, Timothy C. Krehbiel
12th Edition
9780132168380
