Question

Mode Publishing is considering a new printing facility that will involve a large initial outlay and then result in a series of positive cash flows for four years. The estimated cash flows associated with this project are as follows:
Year Project Cash Flow
0 ......... ?
1 ......... $800 million
2 ......... 400 million
3 ......... 300 million
4 ......... 500 million
If you know that the project has a regular payback of 2.5 years, what is the project’s internal rate of return?



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  • CreatedOctober 31, 2014
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