Management of Oriole, Inc., is considering investing in three independent projects. The costs and the cash flows
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Question:
Management of Oriole, Inc., is considering investing in three independent projects. The costs and the cash flows are given in the following table. The appropriate cost of capital is 13.60 percent.
Year | Project 1 | Project 2 | Project 3 |
0 | -240,000 | -330,800 | -530,000 |
1 | 65,000 | 157,525 | 221,100 |
2 | 79,800 | 170,550 | 221,100 |
3 | 86,600 | 101,500 | 221,100 |
4 | 91,400 | 221, 100 |
Compute the project IRRs (Round final answers to 2 decimal places, e.g. 15.25%.):
1. Project 1:
2. Project 2:
3: Project 3:
4: What projects should be accepted?
Related Book For
Fundamentals of corporate finance
ISBN: 978-0470876442
2nd Edition
Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates
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