Central Park Co. is considering a project that will produce cash inflows of $500,000 a year for five years followed by $200,000 a year for the following two years. What is the internal rate of return if the initial cost of the project is $2 million? O 17.48 percent 11.90 percent O 15.81 percent O 13.27 percent
Central Park Co. is considering a project that will produce cash inflows of $500,000 a year for five years followed by $200,000 a year for the following two years. What is the internal rate of return if the initial cost of the project is $2 million? O 17.48 percent 11.90 percent O 15.81 percent O 13.27 percent
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 28P
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![Central Park Co. is considering a project that will produce cash inflows of $500,000 a year for five
years followed by $200,000 a year for the following two years. What is the internal rate of return if
the initial cost of the project is $2 million?
O 17.48 percent
11.90 percent
15.81 percent
13.27 percent](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F9511d4a4-6bf4-4fde-96ab-3c11141c4e2c%2F959eec99-504d-4df3-ae84-304881f2f21c%2Feu182qg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Central Park Co. is considering a project that will produce cash inflows of $500,000 a year for five
years followed by $200,000 a year for the following two years. What is the internal rate of return if
the initial cost of the project is $2 million?
O 17.48 percent
11.90 percent
15.81 percent
13.27 percent
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