Question
(IRR with uneven cash flows ) The Tiffin Barker Corporation is considering introducing a new currency verifier that has the ability to identify counterfeit dollar
(IRR with uneven cashflows )The Tiffin Barker Corporation is considering introducing a new currency verifier that has the ability to identify counterfeit dollar bills. The required rate of return on this project is 14 percent. What is the IRR on this project if it is expected to produce the following cash flows:
Initial outlay
minus
$1,190,245
FCF in year 1
300,000
FCF in year 2
400,000
FCF
in year 3
400,000
FCF
in year 4
300,000
FCF
in year 5
300,000
What is the IRR on this project?
(IRR with uneven cashflows )The Tiffin Barker Corporation is considering introducing a new currency verifier that has the ability to identify counterfeit dollar bills. The required rate of return on this project is 14 percent. What is the IRR on this project if it is expected to produce the following cash flows:
Initial outlay | minus |
$1,190,245
|
|
|
|
|
|
FCF in year 1 |
| 300,000 |
|
|
|
FCF in year 2 |
| 400,000 |
|
|
|
| FCF in year 3 |
| 400,000 |
|
|
|
| FCF in year 4 |
| 300,000 |
|
|
|
| FCF in year 5 | 300,000 |
|
|
|
|
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Managerial Accounting
Authors: John J. Wild, Ken W. Shaw
2010 Edition
9789813155497, 73379581, 9813155493, 978-0073379586
