Question
Harry's Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV and IRR? WACC: 14.75% Cash
Harry's Inc. is considering a project that has the following cash flow and WACC data. What is the project's NPV and IRR?
WACC: 14.75%
Cash flows: Year 0 : - $1000, Year 1: $300, Year 2: $300, Year 3: $300, Year 4: $300, Year 5: $300
| a. | NPV = $10.58 IRR = 13.8%
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| b. | NPV = $13.02 IRR = 17.0%
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| c. | NPV = $11.63 IRR = 15.2%
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| d. | NPV = $9.07 IRR = 11.9%
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| e. | NPV = $10.12 IRR = 13.2% |
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
