Question
We have two projects, E and F, and their cash flows are indicated in the table below. Note that a negative number is cash outflow,
We have two projects, E and F, and their cash flows are indicated in the table below. Note that a negative number is cash outflow, and a positive number is cash inflow.
Suppose that we follow the IRR rule and decide that we will take project E but reject project F.
What will be the rate of cost of capital used in making this decision?
Project E F 0 -950.00 -1,350.00 1 300.00 400.00 Time 2 400.00 700.00 3 500.00 500.00
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Applied Regression Analysis And Other Multivariable Methods
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
5th Edition
1285051084, 978-1285963754, 128596375X, 978-1285051086
