Compute the IRR of a project which will start generating positive cash flows after 2-years of investment for 5-years. The initial investment is $8,000. The first positive cash flow will be $2,000 and it will increase by $500 every year. a. b. C. d. 22.16% 16.19% 5.82% 7.93%

Compute the IRR of a project which will start generating positive cash flows after 2-years of investment for 5-years. The initial investment is $8,000. The first positive cash flow will be $2,000 and it will increase by $500 every year. a. b. C. d. 22.16% 16.19% 5.82% 7.93%

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter19: Capital Investment

Section: Chapter Questions

Problem 22E

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Question

Vaibhav

Compute the IRR of a project which will start generating positive cash flows after 2-years
of investment for 5-years. The initial investment is $8,000. The first positive cash flow will
be $2,000 and it will increase by $500 every year.
a.
22.16%
b. 16.19%
C.
d.
5.82%
7.93%

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