Question
If project B has the cash flow timeline as: Year 0 $-100, Year 1 $75, Year 2 $100, Year 3 $300, Year 4 $75, Year
If project B has the cash flow timeline as: Year 0 $-100, Year 1 $75, Year 2 $100, Year 3 $300, Year 4 $75, Year 5 $200. Compute the IRR. If the cost of capital is 11%, should the firm accept or reject this project?
| 10.956%, reject | ||
| 10.956%, accept | ||
| 22%, accept | ||
| 109.56%, accept |
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Hotel Finance
Authors: Anand Iyengar
1st Edition
0195694465, 978-0195694468
