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Internal rate of Return. Lepton Industries has three potential projects, all with an initial cost of $1,900,000. Given the discount rate and the future cash
Internal rate of Return.
Lepton Industries has three potential projects, all with an initial cost of $1,900,000.
Given the discount rate and the future cash flows of each project, what are the IRRs of the three projects for Lepton Industries?
| Cash Flow | Project Q | Project R | Project S |
| |||
| Year 1 | $500,000 | $600,000 | $1,000,000 | ||||
| Year 2 | $500,000 | $600,000 | $800,000 | ||||
| Year 3 | $500,000 | $600,000 | $600,000 | ||||
| Year 4 | $500,000 | $600,000 | $400,000 | ||||
| Year 5 | $500,000 | $600,000 | $200,000 | ||||
| Discount rate | 9% | 11% | 15% | ||||
Q? R? S?
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