Question
Management of Cullumber, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $166,023,819. The company would lease the aircraft to
Management of Cullumber, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $166,023,819. The company would lease the aircraft to an airline. Cash flows from the proposed leases are shown in the following table.
Years
Cash Flow1-4 $20,855,000
5-7 75,950,000
8-10 94,550,000
What is the IRR of this project?(Round answer to 2 decimal places, e.g. 15.25%.)
The IRR of this project is
%?
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Fundamentals of corporate finance
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
2nd Edition
978-0470933268, 470933267, 470876441, 978-0470876442
