Question
The following table contains the estimated cash flows of a project. Assume the appropriate discount rate (hurdle rate) is 14%. Answer the following questions: Year
The following table contains the estimated cash flows of a project. Assume the appropriate discount rate (hurdle rate) is 14%. Answer the following questions:
Year | Operating Cash Flow |
0 | -$20,000 |
1 | $7,000 |
2 | $8,000 |
3 | $9,000 |
4 | $4,000 |
What is the IRR of project?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the Internal Rate of Return IRR of a project you need to find the discount rate at which the present value of the cash flows equals the i...
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Step: 2
Step: 3
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
