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Your company is considering a new project opportunity. It would immediately receive $200. In return, in the next 4 years it will need to pay
Your company is considering a new project opportunity. It would immediately receive $200. In return, in the next 4 years it will need to pay the following amounts of money: In 1 year: $80 1 Initial Investment -5000 2 Cash-Flow 1 1000 3 Cash-Flow 2 -150 4 Cash-Flow 3 3000 5 Cash-Flow 4 -700 6 Cash-Flow 5 2500 7 Cash Flow. 900 Internal Rate Of Return =IRR(B1:B7) 9 10 11 12 Formula 13 In 2 years: $70 In 3 years: $60 In 4 years: $50 The required annual rate of return is 9%. Answer the following questions: v %. (Round your answer to TWO decimal places. Put your answer in percent, NOT in decimals. For example, if (a) The Internal Rate of Return for this project is your answer is 12.34 percent, then you need to put 12.34, and NOT 0.12) (b) This project should be... # V. (Choose the number from the list below that corresponds to your answer.) #1 | ...accepted #2 ...rejected (c) This project can be called... # (Choose the number from the list below that corresponds to your answer.) #1 ...mutually exclusive project #2 | ...conventional project #3 ...project with non-conventional cash flows #4 ...investing type project #5 ...crossover project
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