Question
Iglesias Corp. is considering investing in a new project, code-named Enrique, which has a 6-year life. Below are the expected cash flows from today through
Iglesias Corp. is considering investing in a new project, code-named Enrique, which has a 6-year life. Below are the expected cash flows from today through the six years (C0-C6).
| C0 | C1 | C2 | C3 | C4 | C5 | C6 |
| -40,000 | 5,000 | 3,000 | 2,000 | 10,000 | 22,000 | 24,000 |
- (4 points) Calculate the IRR of the Enrique project.
- (3 points) If the firm has a hurdle rate of 8 percent, explain whether the firm should go ahead with the Enrique project or not.
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The Handbook Of Alternative Assets
Authors: Peter Temple
1st Edition
161477076X, 978-1906659219
