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Payback Period, IRR, and Minimum Cash Flows The management of Mesquite Limited is currently evaluating the following investment proposal: Time 0 Year 1 Year 2
Payback Period, IRR, and Minimum Cash Flows The management of Mesquite Limited is currently evaluating the following investment proposal: Time Year Year Year Year Initial investment $ Net operating cash inflows $ $ $ $ a Determine the proposal's payback period. Answer years b Determine the proposal's internal rate of return. Refer to Appendix B if you use the table approach. Answer c Given the amount of the initial investment, determine the minimum annual net cash inflows required to obtain an internal rate of return of percent. Round the answer to the nearest dollar. $Answer
Payback Period, IRR, and Minimum Cash Flows
The management of Mesquite Limited is currently evaluating the following investment proposal:
Time Year Year Year Year
Initial investment $
Net operating
cash inflows $ $ $ $
a Determine the proposal's payback period.
Answer
years
b Determine the proposal's internal rate of return. Refer to Appendix B if you use the table approach.
Answer
c Given the amount of the initial investment, determine the minimum annual net cash inflows required to obtain an internal rate of return of percent. Round the answer to the nearest dollar.
$Answer
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