Houston Company is considering a project that has the following cash flow data. What is the project's
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Question:
Houston Company is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected.
Year | 0 | 1 | 2 | 3 | 4 |
Cash flows | −$1,050 | $400 | $400 | $400 | $400 |
14.05%
15.61%
17.34%
19.27%
21.20%
Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
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