Question
Quarterly Inc. 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
Quarterly Inc. 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 cost of capital or negative, in both cases it will be rejected.
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flows | $1,000 | $325 | $325 | $300 | $300 | $300 |
| a. | 18.47% | |
| b. | 18.72% | |
| c. | 17.37% | |
| d. | 16.57% | |
| e. | 16.97% |
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Advanced Finance Theories
Authors: Ser-Huang Poon
1st Edition
9814460370, 978-9814460378
