7. Find the Rate of Return (IRR-Ch 16.3) over 8 years on a project that cost $250,000 today and $100,000 in 3 years but will return (inflow) a net income $70,000 at the end of the year over 8 years. Further, there will be a special cash inflow of $50,000 at the end of year 8.

7. Find the Rate of Return (IRR-Ch 16.3) over 8 years on a project that cost $250,000 today and $100,000 in 3 years but will return (inflow) a net income $70,000 at the end of the year over 8 years. Further, there will be a special cash inflow of $50,000 at the end of year 8.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 19E

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Definition Definition Transfer of funds into a company by any third party, which may happen due to any operational, investing, and financing activities. The cash inflow includes payments made by customers or investments made by the investors into the company by purchasing its equity.

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