A project is being considered which has an initial cost of 210m and produces cash flows of
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Question:
A project is being considered which has an initial cost of £210m and produces cash flows of £52m over each of the following seven years. The firm has a cost of capital for this type of project of 11%.
Determine (i) the Internal Rate of Return (IRR) of the project (to the nearest 0.01%) and (ii) the net present value (NPV) of the project (to the nearest £.01million).
a
(i) 16.00% and (ii) £28.06million
b
(i) 14.73% and (ii) £28.06million
c
(i) 14.73% and (ii) £35.03million
d
(i) 16.00% and (ii) £35.03million
e
None of the above
Related Book For
Managerial economics
ISBN: 978-1118041581
7th edition
Authors: william f. samuelson stephen g. marks
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