Question
Given the Project Cash Flows in the following Table, Answer questions 1a. through 1c: Year Cash Flow 0 - $1,000,000 1 $660,000 2 $660,000 3
Given the Project Cash Flows in the following Table, Answer questions 1a. through 1c:
| Year | Cash Flow |
| 0 | - $1,000,000 |
| 1 | $660,000 |
| 2 | $660,000 |
| 3 | $660,000 |
| 4 | $660,000 |
| 5 | - $1,650,000 |
1a. How many Internal Rates of Return (IRRs) do you anticipate will occur for this projects cash flows? WHY?
1b. What are the relevant IRR(s)? Show your answer(s) to 4 decimal places, e.g. x.xxxx%
1c. If this Project's cost of capital is 3.65%, would you take on this project? WHY? Support your answer!
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Contemporary Topics In Finance
Authors: Iris Claus, Leo Krippner
1st Edition
1119565162, 978-1119565161
