Question
For the project shown in the following table, calculate the internal rate of return. Then indicate, for the project, the maximum cost of capital that
For the project shown in the following table, calculate the internal rate of return. Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable. What is the project's IRR?
| Initial investment | $100,000 |
| Year (t) | Cash inflows |
| 1 | $20,000 |
| 2 | $35,000 |
| 3 | $25,000 |
| 4 | $30,000 |
| 5 | $10,000 |
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International Finance For Dummies
Authors: Ayse Evrensel
1st Edition
111852389X, 978-1118523896
