What is the IRR for the following project if its initial after-tax cost is $5,000,000 and is expected to provide an after-tax operating cash outflow of -$1,800,000 in year 1, followed by inflows of $2,900,000 in year 2, $0 in year 3, $2,700,000 in year 4, and $2,300,000 in year 5? 5.83% 31.53% O None of the four possible given answer is correct O 11.44% 9.67%
What is the IRR for the following project if its initial after-tax cost is $5,000,000 and is expected to provide an after-tax operating cash outflow of -$1,800,000 in year 1, followed by inflows of $2,900,000 in year 2, $0 in year 3, $2,700,000 in year 4, and $2,300,000 in year 5? 5.83% 31.53% O None of the four possible given answer is correct O 11.44% 9.67%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 14
What is the IRR for the following project if its initial after-tax cost is $5,000,000 and is
expected to provide an after-tax operating cash outflow of -$1,800,000 in year 1,
followed by inflows of $2,900,000 in year 2, $0 in year 3, $2,700,000 in year 4, and
$2,300,000 in year 5?
O 5.83%
O 31.53%
O None of the four possible given answer is correct
11.44%
O 9.67%
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