Nique1758 Nique1758

07-11-2019
Business

contestada

Modern Refurbishing Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital (and even negative), in which case it will be rejected.Year 0 1 2 3 4Cash flows −$850 $300 $290 $280 $270a. 13.13%b. 14.44%c. 15.89%d. 17.48%e. 19.22%

Respuesta :

Karabo99 Karabo99

08-11-2019

Answer:

a. 13.13%

Explanation:

Let irr be x%

At irr, present value of inflows = present value of outflows.

850 = 300/1.0x + 290/1.0x^2 + 280/1.0x^3 + 270/1.0x^4

x = IRR

= 13.13%

Therefore, The project's IRR is 13.13%

Answer Link

Otras preguntas

biologists have cataloged many species that determine the allocation of mating opportunities, food, and other resources, both within and between groups, by ___

Calculate the net change in enthalpy for the formation of one mole of acrylic acid from calcium carbide, water and carbon dioxide from these reactions. round yo

1. Douglass tells the story of another cruel slave owner—Mrs. Hamilton, who owns Mary and Henrietta. Review the story and answer the questions. (a) In what way

What is the Arrhenius definition of an acid? A substance that increases H3O+ concentration when it is dissolved in water. A substance that increases OH– concent

In order for nuclear fusion to occur, the core of the sun must be hot enough to overcome the _________ of the nuclei. select one: a. electromagnetic repulsions

What author wrote a story that revolved around a captains underwater adventures with his crew in a submarine long before the submarine was actually invented

Which best explains how this action provokes the speakers decision to murder the old man?

In the sentence, “She had intended to say 'wishfully', not 'wistfully',” the comma is used to set off a _____ expression.

The Spanish club decides to sell school pins $1.50 each and T-shirts at $6.50 each for a fundraiser. They projects that they will sell 20 School pins and five T

In basketball you score 2 points for a field goal and 1 point for a free throw. suppose that you have scored at least 3 points in every game this season, and ha