Question
Warr Company 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
Warr Company 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 |
| Cash flows | -$1,300 | $450 | $450 | $450 | $450 |
| 14.16% | ||
| 14.42% | ||
| 15.31% | ||
| 15.84% | ||
| 16.23% |
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Managerial Accounting 1
Authors: Ray H. Garrison
1st Edition
1259114457, 978-1259114458
