Question
You are evaluating an investment project and learn the following: The projects NPV at a discount rate of 20% is +$35,879 The projects NPV at
You are evaluating an investment project and learn the following:
- The projects NPV at a discount rate of 20% is +$35,879
- The projects NPV at a discount rate of 24% is +$12,356
- The projects NPV at a discount rate of 26% is -$1,923
Based on (i)-(iii) above you know the projects IRR must be:
| Less than 20%
| ||
| Greater than 26%
| ||
| Between 20% and 24%
| ||
| Between 24% and 26%
|
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Cornerstones Of Financial Accounting
Authors: Jay Rich, Jeff Jones, Maryanne Mowen, Don Hansen
2nd Edition
0538473452, 9780538473453
