2.- A project has a total cost of $8,700. The cash flows are $1,000 at first year, $2,000 in the second year, and $3,000 in the third. What is the IRR? If a return of 18% is needed, should this investment be accepted?

2.- A project has a total cost of $8,700. The cash flows are $1,000 at first year, $2,000 in the second year, and $3,000 in the third. What is the IRR? If a return of 18% is needed, should this investment be accepted?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 27P

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2.- A project has a total cost of $8,700. The cash flows are $1,000 at
first year, $2,000 in the second year, and $3,000 in the third. What is the IRR? If a return
of 18% is needed, should this investment be accepted?

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