Question
project has a required return of 12.50 percent. The projects initial cost is $13,000 and its cash flows are: year 1 = $4.000, year 2
project has a required return of 12.50 percent. The projects initial cost is $13,000 and its cash
flows are: year 1 = $4.000, year 2 = $8,000, and year 3 = $5,000.
(a) What is the projects IRR?
(b) What is the payback period for the project? Would you accept the project?
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
17th Edition
126001391X, 978-1260013917
