Question
You propose to expand your utility's power grid into a neighboring county. You project this will cost $170 million up front and will pay off
You propose to expand your utility's power grid into a neighboring county. You project this will cost $170 million up front and will pay off $35 million in year 1, growing at 4% thereafter.
What is the project's IRR?
A: 20.6%
B: 14.2%
C: 9.0%
D: 11.4%
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
