(IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction of a new plant. The plant wil have an initial cash outlay of $7.4 million (= - $7.4 million), and will produce cash flows of $3.3 million at the end of year 1, $5.9 million a the end of year 2, and $1.6 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 wil have an initial cash outlay of $7.4 million (= - $7.4 million), and will produce cash flows of $3.3 million at the end of year 1, $5.9 million a the end of year 2, and $1.6 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
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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