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:Internal Rate of Return. Lepton Industries has three potential projects, all with an initial cost of $2,100,000. Given the discount rates and the future cash flows of each project, what
are the IRRs of the three projects for Lepton Industries?
Cash Flow
Year 1
Year 2
Year 3
Year 4
Year 5
Project Q
$500,000
$500,000
$500,000
$500,000
$500,000
What is the IRR for Project Q?
% (Round to two decimal places.)
What is the IRR for Project R?
% (Round to two decimal places.)
What is the IRR for Project S?
% (Round to two decimal places.)
Project R
$700,000
$700,000
$700,000
$700,000
$700,000
Project S
$1,100,000
$900,000
$700,000
$500,000
$300,000
GTD
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