What is the internal rate of return for a project that cost $50,000 today this project is expected to provide the following net cash flows at the end of each year year one is equal to $10,000 year two is equal to $15,000 year three is equal to $20,000 and year four is equal to $25,000?
What is the internal rate of return for a project that cost $50,000 today this project is expected to provide the following net cash flows at the end of each year year one is equal to $10,000 year two is equal to $15,000 year three is equal to $20,000 and year four is equal to $25,000?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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What is the internal rate of return for a project that cost $50,000 today this project is expected to provide the following net cash flows at the end of each year year one is equal to $10,000 year two is equal to $15,000 year three is equal to $20,000 and year four is equal to $25,000?
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The internal rate of return is the rate at which net present value becomes zero.
Project cost is cash outflows and indicates in a negative sign.
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