(IRR calculation) Jella Cosmetics is considering a project that costs $775,000 and is expected to last for 11 years and produce future cash flows of $180,000 per year. If the appropriate discount rate for this project is 19 percent, what is the project's IRR? The project's IRR is % (Round to two decimal places.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 1P
icon
Related questions
Question
None
(IRR calculation) Jella Cosmetics is considering a project that costs $775,000 and is expected to last for 11 years and produce future cash flows of $180,000 per year. If the appropriate discount
rate for this project is 19 percent, what is the project's IRR?
The project's IRR is % (Round to two decimal places.)
Transcribed Image Text:(IRR calculation) Jella Cosmetics is considering a project that costs $775,000 and is expected to last for 11 years and produce future cash flows of $180,000 per year. If the appropriate discount rate for this project is 19 percent, what is the project's IRR? The project's IRR is % (Round to two decimal places.)
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College