Question
XYZ is considering a project that has an up-front cost and a series of positive cash flows. The project's estimated cash flows are summarized below:
XYZ is considering a project that has an up-front cost and a series of positive cash flows. The project's estimated cash flows are summarized below:
Project Year Cash Flow
0 ?
1 $400 million
2 $600 million
3 $300 million
4 $500 million
The project has an exact payback of 2.85 years. What is the project's internal rate of return (IRR)?
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Exchange Rates and International Finance
Authors: Laurence Copeland
6th edition
273786040, 978-0273786047
