Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

We know the following data of an investment that the company has made: An initial disbursement of 2,000,000 and generates the collections and payments in

We know the following data of an investment that the company has made:

  • An initial disbursement of 2,000,000 and generates the collections and payments in the successive years of its duration that are shown in the following table:

Years

Collection ()

Payments ()

1 Year

2 Year

3 Year

4 Year

4.500.000

5.500.000

6.000.000

4.000.000

3.800.000

4.500.000

5.000.000

3.200.000

Calculate the IRR of the previous project. Justify for what type of discount this investment will be made.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions