Question
Let irr be x% At irr, present value of inflows=present value of outflows. 1800=670/1.0x+720/1.0x^2+680/1.0x^3+460/1.0x^4+260/1.0x^5 Hence x= irr=19.38% Should the project be rejected?
Let irr be x% At irr, present value of inflows=present value of outflows.
1800=670/1.0x+720/1.0x^2+680/1.0x^3+460/1.0x^4+260/1.0x^5
Hence x=irr=19.38%
Should the project be rejected?
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Financial and Managerial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
3rd edition
978-1-119-3916, 1119392132, 1119392136, 9781119391609, 1119391601, 978-1119392132
