Bohrer Mining, Inc., is trying to evaluate a project with the following cash flows: Year .....................Cash Flow
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Bohrer Mining, Inc., is trying to evaluate a project with the following cash flows:
Year .....................Cash Flow
0 ....................−$63,000,000
1 ........................89,000,000
2 .....................−11,000,000
a. If the project has a required return of 10 percent, should it accept this project? Why?
b. Compute the IRR for this project. How many IRRs are there? If you apply the IRR decision rule, should you accept the project or not? What’s going on here?
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Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
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