Question: Inatech is contemplating to undertake Project B and perform a financial analysis to determine whether it is financially lucrative. Project B have the cash flows
Inatech is contemplating to undertake Project B and perform a financial analysis to determine whether it is financially lucrative. Project B have the cash flows as shown below and Inatech uses a required rate of return of 20%. Compute the internal rate of return for the project to determine whether it is worth undertaking. (3 marks) Year B 0 -$400,000 1 $80,000 2 $120,000 3 $160,000 4 $160,000 5 $800,000
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