Consider a ten-year project with an after-tax cash flow of $11 in year t=1. You expect a constant growth rate of g=10% for the next ten years. The initial outflow is $100 in year t=0.

REQUIRED

What is the internal rate of return (IRR) on the project?

According to the IRR rule, would you invest in this project at a cost of capital equal to 5%?

Answer rating: 100% (QA)

SOLUTION To calculate the internal rate of return IRR on the project we need to find t... View the full answer