Humbug Corp. is considering including a press in this year's capital budget. The cash outlay for the press is $ 2,270. The firm's cost of capital is 10.1 %. After-tax cash flows, including depreciation, are as shown in the table below. Calculate the internal rate of return (IRR) for this project. \table[[End of Year,Cash Flow ($ )], [1,720], [2,720], [3,720], [4,720], [5,720]] 17.98% 17.64% 18.25 % 18.65% If the initial investment for a project is $498 and the cash inflows are $296 for 5 years, what is the IRR? IRR = % (Round your answer to two decimal places.)

Cornerstones of Cost Management (Cornerstones Series)
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Chapter19: Capital Investment
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Humbug Corp. is considering including a press in this year's capital budget. The cash outlay for the press is $
2,270. The firm's cost of capital is 10.1%. After-tax cash flows, including depreciation, are as shown in the table
below. Calculate the internal rate of return (IRR) for this project. \table[[End of Year,Cash Flow ($
)], [1,720], [2,720], [3,720], [4,720], [5,720]] 17.98% 17.64% 18.25 % 18.65% If the initial investment for a
project is $498 and the cash inflows are $296 for 5 years, what is the IRR? IRR = % (Round your answer to two
decimal places.)
Transcribed Image Text:Humbug Corp. is considering including a press in this year's capital budget. The cash outlay for the press is $ 2,270. The firm's cost of capital is 10.1%. After-tax cash flows, including depreciation, are as shown in the table below. Calculate the internal rate of return (IRR) for this project. \table[[End of Year,Cash Flow ($ )], [1,720], [2,720], [3,720], [4,720], [5,720]] 17.98% 17.64% 18.25 % 18.65% If the initial investment for a project is $498 and the cash inflows are $296 for 5 years, what is the IRR? IRR = % (Round your answer to two decimal places.)
If the initial investment for a project is $498 and the cash inflows are $296 for 5 years, what is the IRR?
IRR 16 % (Round your answer to two decimal places.)
Transcribed Image Text:If the initial investment for a project is $498 and the cash inflows are $296 for 5 years, what is the IRR? IRR 16 % (Round your answer to two decimal places.)
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