Due to the heavy demand for the LNG (Liquefied Natural Gas) tankers, the Hyunda Shipyard has received a contract 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 signing Year 1: receive $12 M Year 2: disbursement of $40 M Year 3: disbursement of $40 M Year 4: receive $20 M Year 5: receive $40 M, project complete Find out all the positive IRR rates for this non-simple cash flow. 5.74% and 52.94% 5.74% and 45.72% 5.74% and 49.17% 5.74% and 63.47% 5.74% and 58.51%
Due to the heavy demand for the LNG (Liquefied Natural Gas) tankers, the Hyunda Shipyard has received a contract 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 signing Year 1: receive $12 M Year 2: disbursement of $40 M Year 3: disbursement of $40 M Year 4: receive $20 M Year 5: receive $40 M, project complete Find out all the positive IRR rates for this non-simple cash flow. 5.74% and 52.94% 5.74% and 45.72% 5.74% and 49.17% 5.74% and 63.47% 5.74% and 58.51%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Due to the heavy demand for the LNG (Liquefied Natural Gas) tankers, the Hyunda Shipyard has received a
contract 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 signing
Year 1: receive $12 M
Year 2: disbursement of $40 M
Year 3: disbursement of $40 M
Year 4: receive $20 M
Year 5: receive $40 M, project complete
Find 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%
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