Question
The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $275,000 Year 2 $400,000 Year 3 $500,000 Year 4
The project is expected to generate the following net cash flows:
| Year | Cash Flow |
|---|---|
| Year 1 | $275,000 |
| Year 2 | $400,000 |
| Year 3 | $500,000 |
| Year 4 | $400,000 |
Which of the following is the correct calculation of project Deltas IRR?
- 2.05%
- 1.67%
- 1.86%
- 1.95%
If this is an independent project, the IRR method states that the firm should .
If the projects cost of capital were to increase, how would that affect the IRR?
- The IRR would increase.
- The IRR would not change.
- The IRR would decrease.
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Analytical Finance Volume I
Authors: Jan R. M. Röman
1st Edition
3319340263, 978-3319340265
