Question
Project Z has an initial cost of $59,826, and its expected net cash inflows are $12,500 per year for 8 years. The firm has a
Project Z has an initial cost of $59,826, and its expected net cash inflows are $12,500 per year for 8 years. The firm has a WACC of 10 percent, and Project Zs risk would be similar to that of the firms existing assets. Calculate Project Zs internal rate of return (IRR).
| a. | 13.08% | |
| b. | 6.63% | |
| c. | 67.15% | |
| d. | 9.15% | |
| e. | 10.00% |
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Capital Market Finance
Authors: Patrice Poncet, Roland Portait, Igor Toder
1st Edition
3030845982, 978-3030845988
