You are performing a sensitivity analysis on your project to see how inflation will affect its rate of return. The projected inflation rate is 8% and the MARR = 14%. You work that into your income and net cash flow statement, and you derive the following actual dollar net cash flow: Net Cash Flow (40,000) (2,200) 14,759 57,970 The IRR' is within 0.5% of 10% 13% 16% O 19% 22% None of the above

You are performing a sensitivity analysis on your project to see how inflation will affect its rate of return. The projected inflation rate is 8% and the MARR = 14%. You work that into your income and net cash flow statement, and you derive the following actual dollar net cash flow: Net Cash Flow (40,000) (2,200) 14,759 57,970 The IRR' is within 0.5% of 10% 13% 16% O 19% 22% None of the above

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section: Chapter Questions

Problem 23SP

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