A company is considering a project which will add 10,000 per year in cash flow. The project will last for 4 years and has an initial cost of 28,000. The weighted average cost of capital of the firm is 8%. Compute the IRR statistic for the project.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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A company is considering a project which will add 10,000 per year in cash flow. The project will
last for 4 years and has an initial cost of 28,000. The weighted average cost of capital of the firm
is 8%. Compute the IRR statistic for the project.
Transcribed Image Text:A company is considering a project which will add 10,000 per year in cash flow. The project will last for 4 years and has an initial cost of 28,000. The weighted average cost of capital of the firm is 8%. Compute the IRR statistic for the project.
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