Internal rate of return For the project shown in the following table, calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable. The project's IRR is %. (Round to two decimal places.) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Initial investment (CF,) $100,000 Year (t) Cash inflows (CF;) $10,000 $10,000 $45,000 $30,000 $35,000 1 4 5 Print Done

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter11: Cash Flow Estimation And Risk Analysis
Section: Chapter Questions
Problem 7MC: Calculate the project cash flows for each year. Based on these cash flows and the average project...
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Internal rate of return For the project shown in the following table,
calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the firm could have and still find
the IRR acceptable.
The project's IRR is
%. (Round to two decimal places.)
Data Table
(Click on the icon located on the top-right corner of the data table below in order to
copy its contents into a spreadsheet.)
Initial investment (CF,)
$100,000
Year (t)
Cash inflows
(CF;)
$10,000
$10,000
$45,000
$30,000
$35,000
1
4
5
Print
Done
Transcribed Image Text:Internal rate of return For the project shown in the following table, calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable. The project's IRR is %. (Round to two decimal places.) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Initial investment (CF,) $100,000 Year (t) Cash inflows (CF;) $10,000 $10,000 $45,000 $30,000 $35,000 1 4 5 Print Done
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