CNCT ACC CORPORATE FINANCE
CNCT ACC CORPORATE FINANCE
12th Edition
ISBN: 9781264604081
Author: Ross
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 5, Problem 24QAP
Summary Introduction

Adequate information:

Cash flow in Year 0 = -$6,048

Cash flow in Year 1= $34,344

Cash flow in Year 2 = -$72,840

Cash flow in Year 3 = $68,400

Cash flow in Year 4 = -$24,000

To compute: The number of different IRRs and the rate of return at which the project should be undertaken.

Introduction: IRR is the rate that produces zero NPV. Here, the aggregate value of cash inflows is the same as the aggregate value of cash outflows. IRR is also known as the economic rate of return.

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CNCT ACC CORPORATE FINANCE

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