Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Transcribed Image Text:(Calculating IRR, payback, and a missing cash flow) The Merriweather Printing Company is trying to decide on the
merits of constructing a new publishing facility. The project is expected to provide a series of positive cash flows for each
of the next four years. The estimated cash flows associated with this project are as follows:
Project Cash Flow
?
Year
0
1
2
3
4
(Click on the icon in order to copy its contents into a spreadsheet.)
If you know that the project has a regular payback of 2.4 years, what is the project's IRR?
$790,000
360,000
290,000
450,000
The IRR of the project is%. (Round to two decimal places.)
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