Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 45 years, respectively Time: Cash flow 0 -$5,000 $1,200 $2,400 $1,600 $1,600 $1,400 $1,200 Use the IRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final onswer to 2 decimal places.) IRR Answer is complete but not entirely correct. 14.00%

Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 45 years, respectively Time: Cash flow 0 -$5,000 $1,200 $2,400 $1,600 $1,600 $1,400 $1,200 Use the IRR decision rule to evaluate this project. (Do not round intermediate calculations and round your final onswer to 2 decimal places.) IRR Answer is complete but not entirely correct. 14.00%

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 14P

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