47) 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 4 Cash flows −$850 $300 $290 $280 $270 a. 15.89% b. 13.13% c. 19.22% d. 17.48% e. 14.44%
47) 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 4 Cash flows −$850 $300 $290 $280 $270 a. 15.89% b. 13.13% c. 19.22% d. 17.48% e. 14.44%
Chapter11: Cash Flow Estimation And Risk Analysis
Section: Chapter Questions
Problem 2STP
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47) 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 |
4 |
Cash flows |
−$850 |
$300 |
$290 |
$280 |
$270 |
a. |
15.89%
|
|
b. |
13.13%
|
|
c. |
19.22%
|
|
d. |
17.48%
|
|
e. |
14.44%
|
48)
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 |
4 |
Cash flows |
−$850 |
$300 |
$290 |
$280 |
$270 |
a. |
15.89%
|
|
b. |
13.13%
|
|
c. |
19.22%
|
|
d. |
17.48%
|
|
e. |
14.44%
|
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