Question
Show steps/formulas in Excel. Your firm has an average-risk project under consideration. You choose to fund the project in the same manner as the firm's
Show steps/formulas in Excel.
Your firm has an average-risk project under consideration. You choose to fund the project in the same manner as the firm's existing capital structure. The discount rate is 14.00%, what is the IRR of the project given the expected cash flows listed here?
| Category | T0 | T1 | T2 | T3 |
| Investment | -$2,000,000 |
|
|
|
| NWC | -$250,000 |
|
| $250,000 |
| Operating Cash Flow |
| $850,000 | $850,000 | $850,000 |
| Salvage |
|
|
| $50,000 |
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Entrepreneurial Finance
Authors: Steven Rogers
4th Edition
1260461440, 978-1260461442
