Question
The management of Peridot Inc. is submitting a proposal to the Board of Directors for a new facility with the following cash flows. Year Cash
The management of Peridot Inc. is submitting a proposal to the Board of Directors for a new facility with the following cash flows.
| Year | Cash flow |
| 0 | -179 |
| 1 | 62 |
| 2 | 59 |
| 3 | 54 |
| 4 | 43 |
The company's hurdle rate is 8.5%. internal rate of return for the proposed project is closest to:
| A. | 8.5%. | |
| B. | 7.03%. | |
| C. | 8.92%. |
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Capital Markets Institutions Instruments And Risk Management
Authors: Frank J. Fabozzi
5th Edition
0262029480, 9780262029483
