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Question 32 Project X has cash flows of -$50,000, $29,400, $27,200, and $24,500 for years 0 to 3, respectively. Project has an initial cost of $40,000 and an annual cash inflow of $20,000,$25,200, and $54,500 for years 0 to 3, respectively. These are mutually exclusive projects. What is the incremental IRR?

Question 32 Project X has cash flows of -$50,000, $29,400, $27,200, and $24,500 for years 0 to 3, respectively. Project has an initial cost of $40,000 and an annual cash inflow of $20,000,$25,200, and $54,500 for years 0 to 3, respectively. These are mutually exclusive projects. What is the incremental IRR?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question 32 Project X has cash flows of -$50,000, $29,400, $27,200, and $24,500 for years 0 to 3, respectively. Project has an initial cost of $40,000 and an annual cash inflow of $20,000,$25,200, and $54,500 for years 0 to 3, respectively. These are mutually exclusive projects. What is the incremental IRR?
Transcribed Image Text:Question 32 Project X has cash flows of -$50,000, $29,400, $27,200, and $24,500 for years 0 to 3, respectively. Project has an initial cost of $40,000 and an annual cash inflow of $20,000,$25,200, and $54,500 for years 0 to 3, respectively. These are mutually exclusive projects. What is the incremental IRR?
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