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 6%, what would the IRR of the project be, and would you advise the company to go ahead with it ? | ||||||||||
| Cash flows | ||||||||||
| Initial investment | 2,150,000 | |||||||||
| Cash flow year 1 | 435,000 | |||||||||
| Cash flow year 2 | 510,000 | |||||||||
| Cash flow year 3 | 555,000 | |||||||||
| Cash flow year 4 | 605,000 | |||||||||
| Cash flow year 5 | 750,000 | |||||||||
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