Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

If a capital expenditure project has an expected 20% internal rate of return, and a $10,000 net present value, and one cash flow sign change,

image text in transcribed
If a capital expenditure project has an expected 20% internal rate of return, and a $10,000 net present value, and one cash flow sign change, then which one of the following statements about the project is true? The discount rate used to calculate NPV is greater than 20% The project has another internal rate of return in addition to the 20% rate mentioned above In the internal rate of return calculation, the project's cash inflows are assumed to be reinvested at the firm's required rate of return None of these are correct Question 5 3 pts What is the internal rate of return for a project that has a net investment of $14,600 and a single net cash flow of $25.750 in 5 years? 10% 12% 15.396 13.1%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computational Finance And Its Applications

Authors: C. A. Brebbia, M. Costantino

1st Edition

1853127094, 978-1853127090

More Books

Students also viewed these Finance questions

Question

For the circuit in Fig. 13.76, find Vo. 1 2 2 12/0 /612

Answered: 1 week ago

Question

=+how might their legitimacy be improved?

Answered: 1 week ago