Management of Ivanhoe, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $193,011,370. The company would lease the aircraft to an airline. Cash flows from the proposed leases are shown in the following table. Years Cash Flow 1–4 $27,985,000 5–7 87,030,000 8–10 91,490,000 What is the IRR of this project?
Management of Ivanhoe, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $193,011,370. The company would lease the aircraft to an airline. Cash flows from the proposed leases are shown in the following table. Years Cash Flow 1–4 $27,985,000 5–7 87,030,000 8–10 91,490,000 What is the IRR of this project?
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
Problem 1PS
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Management of Ivanhoe, Inc., an aviation firm, is considering purchasing three aircraft for a total cost of $193,011,370. The company would lease the aircraft to an airline. Cash flows from the proposed leases are shown in the following table.
| Years |
Cash Flow | |
|---|---|---|
|
1–4
|
$27,985,000 | |
|
5–7
|
87,030,000 | |
|
8–10
|
91,490,000 |
What is the
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