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Management of Carla Vista, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $167,560,744. The company would lease the aircraft to an airline. Required rate of return is 18.11%. Cash flows from the proposed leases are shown in the following table. Years Cash Flow 1-4 $23,295,000 5-7 78,790,000 8-10 81,940,000 What is the IRR of this project? (Do not round discount factors. Round other intermediate calculations to O decimal places e.g. 15 and final answer to 2 decimal places, e.g. 5.25%.) The IRR of this project is %

Management of Carla Vista, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $167,560,744. The company would lease the aircraft to an airline. Required rate of return is 18.11%. Cash flows from the proposed leases are shown in the following table. Years Cash Flow 1-4 $23,295,000 5-7 78,790,000 8-10 81,940,000 What is the IRR of this project? (Do not round discount factors. Round other intermediate calculations to O decimal places e.g. 15 and final answer to 2 decimal places, e.g. 5.25%.) The IRR of this project is %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Management of Carla Vista, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $167,560,744. The company would lease the aircraft to an airline. Required rate of return is 18.11%. Cash flows from the proposed leases are shown in the following table. Years Cash Flow 1-4 $23,295,000 5-7 78,790,000 8-10 81,940,000 What is the IRR of this project? (Do not round discount factors. Round other intermediate calculations to O decimal places e.g. 15 and final answer to 2 decimal places, e.g. 5.25%.) The IRR of this project is %
Transcribed Image Text:Management of Carla Vista, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $167,560,744. The company would lease the aircraft to an airline. Required rate of return is 18.11%. Cash flows from the proposed leases are shown in the following table. Years Cash Flow 1-4 $23,295,000 5-7 78,790,000 8-10 81,940,000 What is the IRR of this project? (Do not round discount factors. Round other intermediate calculations to O decimal places e.g. 15 and final answer to 2 decimal places, e.g. 5.25%.) The IRR of this project is %
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