Question
Please analyze the following project. All cash flows are in millions, they are assumed to be after-tax and they occur evenly over each year. The
Please analyze the following project. All cash flows are in millions, they are assumed to be after-tax and they occur evenly over each year. The client requires a 20% rate of return.
| Year | Cash Flow | Discounted Cash Flows |
| 0 | -4,500 |
|
| 1 | 1,500 |
|
| 2 | 1,700 |
|
| 3 | 4,500 |
|
| IRR |
|
|
| NPV |
|
|
The IRRs for this Project is:
Multiple Choice
-
The Project IRR is 22.56%
-
The Project IRR is 15.65%
-
The Project IRR is 27.52%
-
The Project IRR is 26.14%
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Intermediate Accounting Volume 1
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
12th Canadian edition
119-49633-5, 1119496497, 1119496330, 978-1119496496
