Question
You've estimated the following cash flows (in $) for a project: A B 1 Year Cash flow 2 0 -5,600 3 1 1,300 4 2
You've estimated the following cash flows (in $) for a project:
| A | B | |
| 1 | Year | Cash flow |
| 2 | 0 | -5,600 |
| 3 | 1 | 1,300 |
| 4 | 2 | 2,100 |
| 5 | 3 | 3,400 |
The required return for the project is 8%.
What is the IRR for the project?
Should you accept the project?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the Internal Rate of Return IRR for the project you can use the cash flows provided and ...
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
