A project which has an outlay of $407,328 will provide a cash flow of $80,000 for 15
Fantastic news! We've Found the answer you've been seeking!
Question:
A project which has an outlay of $407,328 will provide a cash flow of $80,000 for 15 years.
i) What is the IRR?
ii) If your required rate of return is 32 percent calculate the NPV and determine whether you should accept the project?
iii) If you have arbitrarily set the required return at 32 percent but the market rate of return for a project with this level of risk is 16 percent should the project be accepted?
Related Book For
Management Science The Art of Modeling with Spreadsheets
ISBN: 978-1118582695
4th edition
Authors: Stephen G. Powell, Kenneth R. Baker
Posted Date: