2 Due to the heavy demand for the LNG (Liquefied Natural Gas) tankers, the Hyunda Shipyard has received acontract from DET Inc., a European LNG transportation company, for building two 100,000 M³ tankers.Hyunda's cash flow throughout the 5 years contract period are summarized as follows:Year 0: receive $12 M upon contract signingYear 1: receive $12 MYear 2: disbursement of $40 MYear 3: disbursement of $40 MYear 4: receive $20 MYear 5: receive $40 M, project completeFind out all the positive IRR rates for this non-simple cash flow.O 5.74% and 52.94%5.74% and 45.72%O 5.74% and 49.17%5.74% and 63.47%5.74% and 58.51%

The internal rate of return (IRR) refers to the real rate of return expected from the project. The…

Answered: Due to the heavy demand for the LNG…

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter9: Operating Activities

Section: Chapter Questions

Problem 18PC

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