(Calculating IRR, payback, and a missing cash flow) The Merriweather Printing Company is trying to decide on the merits of constructing a new publishing facility. The project is expected to provide a series of positive cash flows for each of the next four years. The estimated cash flows associated with this project are as follows: Year Project Cash Flow 0 ? 1 $800,000 2 400,000 3 300,000 4 500,000 If you know that the project has a regular payback of 2.5 years, what is the project's IRR? The IRR of the project is ( ? ) %. (Round to two decimal places.)
(Calculating IRR, payback, and a missing cash flow) The Merriweather Printing Company is trying to decide on the merits of constructing a new publishing facility. The project is expected to provide a series of positive cash flows for each of the next four years. The estimated cash flows associated with this project are as follows: Year Project Cash Flow 0 ? 1 $800,000 2 400,000 3 300,000 4 500,000 If you know that the project has a regular payback of 2.5 years, what is the project's IRR? The IRR of the project is ( ? ) %. (Round to two decimal places.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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(Calculating IRR, payback, and a missing cash flow)
The Merriweather Printing Company is trying to decide on the merits of constructing a new publishing facility.
The project is expected to provide a series of positive cash flows for each of the next four years.
The estimated cash flows associated with this project are as follows:
|
Year
|
Project Cash Flow
|
|
|
0
|
?
|
|
|
1
|
$800,000
|
|
|
2
|
400,000
|
|
|
3
|
300,000
|
|
|
4
|
500,000
|
If you know that the project has a regular payback of
2.5 years, what is the project's IRR?
The IRR of the project is ( ? ) %.
(Round to two decimal places.)
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