The cost of the project is $100,000. You expect the project to make $500,000 in 7years (CF of year 7 = $500,000). Youjr cost of capital is 15%. The IRR for this project equals___. A)25.85%B)23.94%C)22.01%D)17.85%

The cost of the project is $100,000. You expect the project to make $500,000 in 7years (CF of year 7 = $500,000). Youjr cost of capital is 15%. The IRR for this project equals___. A)25.85%B)23.94%C)22.01%D)17.85%

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 1P: A project has an initial cost of 40,000, expected net cash inflows of 9,000 per year for 7 years,...

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Question

The cost of the project is $100,000. You expect the project to make $500,000 in 7years (CF of year 7 = $500,000). Youjr cost of capital is 15%. The IRR for this project equals___.

A)25.85%
B)23.94%
C)22.01%
D)17.85%

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