MyLab Finance with Pearson eText -- Access Card -- for Fundamentals of Corporate Finance
MyLab Finance with Pearson eText -- Access Card -- for Fundamentals of Corporate Finance
4th Edition
ISBN: 9780134476445
Author: Jonathan Berk, Peter DeMarzo, Jarrad Harford
Publisher: PEARSON
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Chapter 8, Problem 24P
Summary Introduction

Internal Rate of return: Internal rate of return is that rate at which the present value of cash inflows is similar to the present value of cash outflows and resulted net present value became zero.

Modified Internal Rate of Return: The investment can have the more than one internal rates of return that can create the ambiguity, to remove this limitation of the internal rate of return, the investors use the rate which known as modified interval rate of return.

To Identify: The modified internal rate of return, to evaluate the maximum shutdown cost can be incurred still meet the cost of capital at 15%.

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Working capital explained; Author: The Finance Storyteller;https://www.youtube.com/watch?v=XvHAlui-Bno;License: Standard Youtube License