Question
Suppose you are the government and have to build a day care center for old people. Suppose this project has the following cash flows: An
Suppose you are the government and have to build a day care center for old people. Suppose this project has the following cash flows: An immediate cash outlay of EUR 15000 followed by inflows of EUR 12950 in year 1, EUR 13050 in year 2, and zero thereafter. What is the IRR of this project? (express your answer as a decimal, e.g. 0.78 and not as a percentage, i.e. 78%; round to the third digit after the decimal point) - If the discount rate is 6.0%, the benefit-cost ratio will equal approximately (express your answer as a decimal, e.g. 0.78 and not as a percentage, i.e. 78%; round to the third digit after the decimal point): -
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