Consider the following cash flows: CO C1 C2 C3 C4 -$43 +$39 +$39 +$39 -$78 a....
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Consider the following cash flows: CO C1 C2 C3 C4 -$43 +$39 +$39 +$39 -$78 a. This project has two IRR's. One is slightly above 7% and the other is slightly below 34%. What are these two rates? b. What is project NPV if the discount rate is 5%? c. What if it is 20% ? 40%? Consider the following cash flows: CO C1 C2 C3 C4 -$43 +$39 +$39 +$39 -$78 a. This project has two IRR's. One is slightly above 7% and the other is slightly below 34%. What are these two rates? b. What is project NPV if the discount rate is 5%? c. What if it is 20% ? 40%?
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To find the two internal rates of return IRR we need to solve for the discount rate that makes the n... View the full answer
Related Book For
College Mathematics For Business Economics, Life Sciences, And Social Sciences
ISBN: 978-0134674148
14th Edition
Authors: Raymond Barnett, Michael Ziegler, Karl Byleen, Christopher Stocker
Posted Date:
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