Back to top
  • Register/Login

    I already have an account here

    Lost password?
    New Customer ? Sign up

757 828 1585
support@tutorialsservice.com
Tutorials Service
  • Shop
  • Cart
  • Checkout
  • My Account
  • Blog
  • Shop
  • Cart
  • Checkout
  • My Account
  • Blog
Mini Cart 0 items - $0.00
  • No products in the cart.
10 Jan

Suppose you have the following initial outlay and free cash flow information

by jagguarpaw On: Finance - 0 Comment

Question: Suppose you have the following initial outlay and…

Suppose you have the following initial outlay and free cash flow information on a potential investment project where upper management requires a payback period of 4 or fewer years (i.e. required payback period ≤ 3.99999 years) and that investors’ Required Rate of Return is 15%. Also, suppose that you will make project acceptance or rejection decisions for each problem independently of decisions made in other problems.

 

What is the project’s Internal Rate of Return (IRR)? Would you accept the project? Please select answer from below.

         
  Period CF    
  0 -100,000    
  1 130,000    
  2 50,000    
  3 31,000    
  4 34,000    
  5 18,000    
  6 16,000    
  7 12,000    
a. 14.29%; No
b. 15.00%; Yes
c. 15.00%; No
d. 18.34%; Yes

 

Bookmark and Share
Tags: Suppose you have the following, Suppose you have the following initial, Suppose you have the following initial outlay, Suppose you have the following initial outlay and, Suppose you have the following initial outlay and free cash, Suppose you have the following initial outlay and free cash flow, Suppose you have the following initial outlay and free cash flow information Share

Copyright 2017 © All Rights Reserved With Tutorials Service LLC

X