Question
Hart Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be
Hart Corp. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases, it will be rejected.
| Year | 0 | 1 | 2 | 3 |
| Cash flows | −$1,000 | $425 | $425 | $425 |
a. 13.87%
b. 13.21%
c. 15.29%
d. 12.55%
e. 14.56%Step by Step Solution
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
