The annual cash flows of a project are shown in the table below: Year t = 0 t = 1 t = 2 Cash Flow -$951 M $2,710 M -$1,887 M The discount rate for the project is 29.0% per annum and spreadsheet analysis has found an internal rate of return of 21.0% per annum. Given this information, should the firm invest in the project?
The annual cash flows of a project are shown in the table below: Year t = 0 t = 1 t = 2 Cash Flow -$951 M $2,710 M -$1,887 M The discount rate for the project is 29.0% per annum and spreadsheet analysis has found an internal rate of return of 21.0% per annum. Given this information, should the firm invest in the project?
Chapter10: Capital Budgeting: Decision Criteria And Real Option
Section: Chapter Questions
Problem 10P
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The annual cash flows of a project are shown in the table below:
Year | t = 0 | t = 1 | t = 2 |
Cash Flow | -$951 M | $2,710 M | -$1,887 M |
The discount rate for the project is 29.0% per annum and spreadsheet analysis has found an
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