Question
Please show all work 1) WWW Company is considering a project that has the following cash flow data. What is the project's IRR? Note that
Please show all work
1) WWW Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the WACC or negative, in both cases it will be rejected.
Year 0 1 2 3 4
Cash flows -$1,400 $400 $400 $600 $600
2) Talent Inc. is considering a project that has the following cash flow data.
(a) What is the project's payback period?
(b) What is the project's discounted payback period?
Assume the cost of capital is 10%.
Year 0 1 2 3
Cash flows -$1,150 $500 $500 $600
3) Redesign Inc. is considering a project that has the following cash flow data.
(a) What is the project's payback period?
(b) What is the project's discounted payback period?
Assume the cost of capital is 7%.
Year 0 1 2 3
Cash flows -$500 $200 $200 $200
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