Consider the following cash flows: C0=-$42C1=+$38C2=+$38C3=+$38C4=-$76a. Which two of the following rates are the IRRs of this project? (You may select more than one answer.) check all that apply2.5%7.8%14.3%32.5%40.0% b. What is project NPV if the discount rates are 5%, 20%, 40%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 3 decimal places.)

Capital budgeting refers to the evaluation of the profitability of potential investment and projects…

Answered: Consider the following cash flows:…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 13P

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Consider the following cash flows:

C0=-$42

C1=+$38

C2=+$38

C3=+$38

C4=-$76

a. Which two of the following rates are the IRRs of this project? (You may select more than one answer.)

check all that apply

2.5%
7.8%
14.3%
32.5%
40.0%

b. What is project NPV if the discount rates are 5%, 20%, 40%? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 3 decimal places.)

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