Question
Given the following net cash flows, determine the IRR of the project: Time Net Cash Flow ($) 0 1,520 1 -1,000 2 -1,500 3 500
Given the following net cash flows, determine the IRR of the project:
Time | Net Cash Flow ($) |
0 | 1,520 |
1 | -1,000 |
2 | -1,500 |
3 | 500 |
Required:
1) There are four pitfalls to using IRR calculations, based on the borrow/lending problem, should the project be accepted? Why or why not? Assume a 10% discount rate
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Get StartedRecommended Textbook for
Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
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