Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Calculating IRR, payback and a missing cash flow.
the merrieeather 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 the next four years. The estimated cash flows associated with this project are as follows:
year Project cash flow
0. ?
1. $770,000
2. $350,000
3. $260,000
4. $470,000
if you know that the project has a regular payback of 2.8 year, what is the project's IRR?
what is the initial investment of the project
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