Question
Thorley Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can
Thorley Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACC or negative, in both cases it will be rejected.
| Year | 0 | 1 | 2 | 3 | 4 | 5 |
| Cash flows | -$1,075 | $325 | $325 | $325 | $325 | $325 |
| a. | 15.57% | |
| b. | 16.50% | |
| c. | 19.46% | |
| d. | 12.14% | |
| e. | 16.97% |
which one
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Finance Basics 20 Minute Manager
Authors: Harvard Business Review
1st Edition
1625270852, 978-1625270856
