(IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction of a new plant. The plant will have an initial cash outlay of $6.7 million (= - $6.7 million), and will produce cash flows of $3.5 million at the end of year 1, $4.2 million at the end of year 2, and $1.5 million at the end of years 3 through 5. What is the internal rate of return on this new plant? The IRR of the project is ☐ %. (Round to two decimal places.)

(IRR of an uneven cash flow stream) Microwave Oven Programming, Inc. is considering the construction of a new plant. The plant will have an initial cash outlay of $6.7 million (= - $6.7 million), and will produce cash flows of $3.5 million at the end of year 1, $4.2 million at the end of year 2, and $1.5 million at the end of years 3 through 5. What is the internal rate of return on this new plant? The IRR of the project is ☐ %. (Round to two decimal places.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6EA: The management of Kawneer North America is considering investing in a new facility and the following...

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The management of Kawneer North America is considering investing in a new facility and the following cash flows are expected to result from the investment: A. What is the payback period of this uneven cash flow? B. Does your answer change if year 10s cash inflow changes to $500,000?
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