Answered: A project requires an investment of…

A project requires an investment of $1000 and generates a cash flow of $1000 in 1 year and another $1000 in 5 years. What is the IRR? A. 16.87% B. 25.13% C. 32.47% D. 38.16%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 15EB: Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is...

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Question

A project requires an investment of $1000 and generates a

cash flow of $1000 in 1 year and another $1000 in 5 years.

What is the IRR?

A. 16.87%

B. 25.13%

C. 32.47%

D. 38.16%

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