Nichols Inc. is considering a project that has the following cash flow data. What is the project's
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Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases, it will be rejected.
Year | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flows | −$1,250 | $325 | $325 | $325 | $325 | $325 |
a. 9.91%
b. 10.40%
c. 9.43%
d. 11.47%
e. 10.92%
Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
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