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: Initial investment. 2,000,000 Cash flow year 1. 500,000 Cash flow year 2. 550,000 Cash flow year 3. 600,000 Cash flow year 4. 650,000 Cash flow year 5. 700,000 Considering the discount rate is of 8%, what would the IRR of the project be, and would you advise the company to go ahead with it?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!