(IRR calculation) Jella Cosmetics is considering a project that costs $750,000 and is expected to last for 8 years and produce future cash flows of $180,000 per year. If the appropriate discount rate for this project is 19 percent, what is the project's IRR? The project's IRR is %. (Round to two decimal places.)
(IRR calculation) Jella Cosmetics is considering a project that costs $750,000 and is expected to last for 8 years and produce future cash flows of $180,000 per year. If the appropriate discount rate for this project is 19 percent, what is the project's IRR? The project's IRR is %. (Round to two decimal places.)
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 1P
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![(IRR calculation) Jella Cosmetics is considering a project that costs $750,000 and is expected to last for 8 years and produce future cash flows of $180,000 per year.
If the appropriate discount rate for this project is 19 percent, what is the project's IRR?
The project's IRR is %. (Round to two decimal places.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3b54df4a-d105-4081-aa93-409d2059a7fd%2F6f2ea524-038d-4ab8-985f-68ed1ae04738%2Fofj1o3d_processed.png&w=3840&q=75)
Transcribed Image Text:(IRR calculation) Jella Cosmetics is considering a project that costs $750,000 and is expected to last for 8 years and produce future cash flows of $180,000 per year.
If the appropriate discount rate for this project is 19 percent, what is the project's IRR?
The project's IRR is %. (Round to two decimal places.)
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