4. Calculate the internal rate of return (IRR) of the following cash flows: Year Cash Flow The company move forward with project A only as it has a positive NPV which give the the profit in thei 0 1 2 3 4 5 6 7 330,000 365,000 380,000 415,000 405,000 370000 294,000 #*#****

4. Calculate the internal rate of return (IRR) of the following cash flows: Year Cash Flow The company move forward with project A only as it has a positive NPV which give the the profit in thei 0 1 2 3 4 5 6 7 330,000 365,000 380,000 415,000 405,000 370000 294,000 #*#****

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

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Question

$1.5 million budget to spend on new projects for the year. Should the
company move forward with one, both, or neither of the two new
products? Show your work to support your answer.
Insert your answer.
3 4. Calculate the internal rate of return (IRR) of the following cash flows:
4
Year
Cash Flow
B
D
Project B NPV: -11271.38
E
F
4
G
H
J
K
L
The company move forward with project A only as it has a positive NPV which give the the profit in the
6
0
1
2
3
5
6
7
330,000 365,000 380,000 415,000 405,000 370000
294,000

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