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
Related questions
Question

Transcribed Image Text:24
es
Year
01234
a. What is the IRR of this project? (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g.. 32.16.)
IRR
Cash Flows
$9,800
-4,300
-3,300
-2,500
-2,300
b. If the appropriate discount rate is 10 percent, should you accept this project?
O Reject
O Accept
c. If the appropriate discount rate is 20 percent, should you accept this project?
O Reject
O Accept
d-1. What is the NPV of the project if the appropriate discount rate is 10 percent? (A
negative answer should be indicated by a minus sign. Do not round intermediate
calculations and round your answer to 2 decimal places, e.g., 32.16.)
d-2. What is the NPV of the project if the appropriate discount rate is 20 percent? (Do
not round intermediate calculations and round your answer to 2 decimal places,
e.g., 32.16.)
d-1. NPV
d-2. NPV
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