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Charles Enterprises got into the drone manufacturing business. They anticipate the following cash flows for their project. Year 0 1 2 3 5 Costs $
Charles Enterprises got into the drone manufacturing business. They anticipate the following cash flows for their project. Year 0 1 2 3 5 Costs $ 100,000 40,000 40,000 40,000 40,000 100,000 30,000 Savings $ 0 70,000 75,000 80,000 85,000 50,000 90,000 4 The company invests their money at projects that bring them a rate of 18% per year. When they want to take loans, they receive loans with a rate of 12% per year. a) How many possible values of i* could this project have? Why? b) Determine the external rate of return using the MIRR method. Show your steps
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