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(IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction of a new plant. The plant will have an initial cash outlay of $6.7 million (= - $6.7 million), and will produce cash flows of $3.5 million at the end of year 1, $4.2 million at the end of year 2, and $1.5 million at the end of years 3 through 5. What is the internal rate of return on this new plant? The IRR of the project is ☐ %. (Round to two decimal places.)

(IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction of a new plant. The plant will have an initial cash outlay of $6.7 million (= - $6.7 million), and will produce cash flows of $3.5 million at the end of year 1, $4.2 million at the end of year 2, and $1.5 million at the end of years 3 through 5. What is the internal rate of return on this new plant? The IRR of the project is ☐ %. (Round to two decimal places.)

Essentials Of Investments
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
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(IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction of a new plant. The plant will have an initial cash outlay of $6.7 million ($6.7 million), and will produce cash flows of $3.5 million at the end of year 1, $4.2 million at the end of year 2, and $1.5 million at the end of years 3 through 5. What is the internal rate of return on this new plant? The IRR of the project is %. (Round to two decimal places.)
Transcribed Image Text:(IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction of a new plant. The plant will have an initial cash outlay of $6.7 million ($6.7 million), and will produce cash flows of $3.5 million at the end of year 1, $4.2 million at the end of year 2, and $1.5 million at the end of years 3 through 5. What is the internal rate of return on this new plant? The IRR of the project is %. (Round to two decimal places.)
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