CFIN -STUDENT EDITION-ACCESS >CUSTOM<
6th Edition
ISBN: 9780357752951
Author: BESLEY
Publisher: CENGAGE C
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Chapter 1, Problem 1PROB
Summary Introduction
To determine: the definition of Finance and types of financial decisions made by people in Finance
Expert Solution & Answer
Explanation of Solution
Finance represents a wide-ranging space where decisions pertinent to available resources such as money, assets and investments can be made. It is generally defined as the art of resources (eg. Money) management involving creation, acquisition, exchange or utilization of resources.
People in Finance (individuals, businesses or governments) generally make decisions related to acquisition or utilization of money or other resources.
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Problem 5-5 Calculating IRR
A firm has a project with the following cash flows:
Year
Cash Flow
0
-$27,700
1
23
11,700
14,700
10,700
The appropriate discount rate is 18 percent. What is the IRR for this project? (Do not
round intermediate calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)
IRR
%
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Chapter 1 Solutions
CFIN -STUDENT EDITION-ACCESS >CUSTOM<
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