OUESTION 6Charlie's Hamburgers is considering adding hotdogs to its menu. The hotdogs require purchasing cooking equipment on sale for S18, 000 . The asset has a 6 - year life, will produce a cash flow of S4, 700 in the first year, S5, 100 in the second year, S5, 500 in the third year. S5, 900 in the fourth year, 6, 200 in the fifth year, and S6, 400 in the sixth year. The cost of capital is 10% . What is the project's internal Rate of Retum (IRR) ? A 19.44 % B 017.86% C 24.73%C O D.20.260/0 0 E. 31.25%
OUESTION 6Charlie's Hamburgers is considering adding hotdogs to its menu. The hotdogs require purchasing cooking equipment on sale for S18, 000 . The asset has a 6 - year life, will produce a cash flow of S4, 700 in the first year, S5, 100 in the second year, S5, 500 in the third year. S5, 900 in the fourth year, 6, 200 in the fifth year, and S6, 400 in the sixth year. The cost of capital is 10% . What is the project's internal Rate of Retum (IRR) ? A 19.44 % B 017.86% C 24.73%C O D.20.260/0 0 E. 31.25%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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OUESTION 6Charlie's Hamburgers is considering adding hotdogs to its menu. The hotdogs require purchasing cooking equipment on sale for S18, 000 . The asset has a 6 - year life, will produce a cash flow of S4, 700 in the first year, S5, 100 in the second year, S5, 500 in the third year. S5, 900 in the fourth year, 6, 200 in the fifth year, and S6, 400 in the sixth year. The cost of capital is 10% . What is the project's internal Rate of Retum (IRR) ?
A 19.44 % B 017.86% C 24.73%C O D.20.260/0 0 E. 31.25%
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