Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What discount rate would you be indifferent between accepting the project, assuming the project has an initial cost of 10,000 with annual cash inflows of

What discount rate would you be indifferent between accepting the project, assuming the project has an initial cost of 10,000 with annual cash inflows of 2,000 for 6 years? A. 5.47%

B. 5.46%

C. 4.2%

D. 4.25%

------------------------------------------------------------------------------------------------------ - My IRR was 5.471792502% (by Financial calculator), so I chose [A].

- Please help me check if my answer was right or wrong regarding of the requirement of the question. Thanks!!

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

International Finance Transactions Policy And Regulation

Authors: Hal Scott, Anna Gelpern

21st Edition

1634602048, 978-1634602044

More Books

Students also viewed these Finance questions

Question

How to Calculate the Regression Line

Answered: 1 week ago

Question

What are the ethical scrutiny requirements of your centre?

Answered: 1 week ago