Suppose we have a project with the following cash flows: Outgoing: P150,000 at t = 0, P250,000 at t = 1, and P250,000 at t = 2. Income: P1 million at t = 3. Find the IRR of the project. Round off to 1 decimal place. (ex. 10.1%)
Suppose we have a project with the following cash flows: Outgoing: P150,000 at t = 0, P250,000 at t = 1, and P250,000 at t = 2. Income: P1 million at t = 3. Find the IRR of the project. Round off to 1 decimal place. (ex. 10.1%)
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section10.6: Profitability Index (pi)
Problem 2ST
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![Suppose we have a project with the following cash flows:
Outgoing: P150,000 at t = 0, P250,000 at t =
1, and P250,000 at t = 2. Income: P1 million at t = 3.
Find the IRR of the project. Round off to 1 decimal place. (ex. 10.1%)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffc4b33cb-db9c-4c04-ab11-b1e9878be526%2F7e8ba074-f0e5-4a1e-ada7-992bedd2612f%2Fkzyo43_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose we have a project with the following cash flows:
Outgoing: P150,000 at t = 0, P250,000 at t =
1, and P250,000 at t = 2. Income: P1 million at t = 3.
Find the IRR of the project. Round off to 1 decimal place. (ex. 10.1%)
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