The following table contains the estimated cash flows of a project. Assume the appropriate discount rate (hurdle
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Question:
The following table contains the estimated cash flows of a project. Assume the appropriate discount rate (hurdle rate) is 14%. Answer the following questions:
Year | Operating Cash Flow |
0 | -$20,000 |
1 | $7,000 |
2 | $8,000 |
3 | $9,000 |
4 | $4,000 |
What is the IRR of project?
Expert Answer:
To calculate the Internal Rate of Return IRR of a project you need to find the discount rate at which the present value of the cash flows equals the i... View the full answer
Related Book For 
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
