An investment project requires aninitial cash outlay of $800 and thengenerates the following cash flows.End of year 1: $200 End of year 2: $300 End of year 3: $500 What is theIRR of this project?

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Answered: An investment project requires an…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 10P

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An investment project requires an initial cash outlay of $800 and then generates the following cash flows. End of year 1: $200 End of year 2: $ 300 End of year 3: $500 What is the IRR of this project?