A project has the following cash inflows $40,000; $60,500; $70,000; and $48,800 for years 1 through 4, respectively. The initial cash outflow is $184,000. Which of the following four statements is correct concerning the project internal rate of return (IRR)? a. The IRR is between 10 and 14% b. The IRR > 18% c. The IRR < 10% d. The IRR is greater than 14% but less than 18%
A project has the following
The IRR is between 10 and 14%
The IRR > 18%
The IRR < 10%
The IRR is greater than 14% but less than 18%
In estimating "after-tax incremental operating cash flows" for a project, you should include all of the following except __________.
costs that have previously been incurred that are unrecoverable
changes in costs due to a general appreciation in those costs
the amount (net of taxes) that we could realize from selling a currently unused building of ours that we intend to use for our project
changes in working capital resulting from the project, net of spontaneous changes in current liabilities
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