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I only need the answer for IRR. Thank you. I have already sent this question two times and they have got it wrong, so please
I only need the answer for IRR. Thank you. I have already sent this question two times and they have got it wrong, so please make sure.
Anderson International Limited is evaluating a project in Erewhon. The project will create the following cash flows: Year Cash Flow 1,190,000 365,000 430,000 325,000 280,000 0 2 3 4 All cash flows will occur in Erewhon and are expressed in dollars. In an attempt to improve its economy, the Erewhonian government has declared that all cash flow:s created by a foreign company are "blocked" and must be reinvested with the government for one year. The reinvestment rate for these funds is 5 percent. If Anderson uses a required return of 9 percent on this project, what are the NPV and IRR of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g. 32.16. Enter your IRR as a percent.) Answer is complete but not entirely correct. 85,955.37 IRR 430 %Step by Step Solution
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