Question: Lepton Industries has three potential projects, all with an initial cost of $2100000. Given the discount rates and the future cash flows of each project,
Lepton Industries has three potential projects, all with an initial cost of $2100000. Given the discount rates and the future cash flows of each project, what are the IRRs of the three projects for Lepton Industries?
| Cash Flow | Project Q | Project R | Project S |
| Year 1 | $500,000 | $700,000 | $1,100,000 |
| Year 2 | $500,000 | $700,000 | $900,000 |
| Year 3 | $500,000 | $700,000 | $700,000 |
| Year 4 | $500,000 | $700,000 | $500,000 |
| Year 5 | $500,000 | $700,000 | $300,000 |
| Discount Rate | 8% | 11% | 18%
|
What is the IRR for Project Q?
What is the IRR for Project R?
What is the IRR for Project S?
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