Question: A company is looking to acquire additional outlets for increasing storage needs The project's II (initial investment) and future cash flows would look as follows:
| A company is looking to acquire additional outlets for increasing storage needs | |||||||
| The project's II (initial investment) and future cash flows would look as follows: | |||||||
| Considering that the discount rate is 5%, what would the IRR of the project be, and would you advise the company to go ahead with it ? | |||||||
| Cash flows | |||||||
| Initial investment | 1,750,000 | ||||||
| Cash flow year 1 | 550,000 | ||||||
| Cash flow year 2 | 610,000 | ||||||
| Cash flow year 3 | 685,000 | ||||||
| Cash flow year 4 | 705,000 | ||||||
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