What is the IRR for the following project if its initial after-tax cost is $5,000,000 and is expected to provide an after-tax operating cash outflow of -$1,800,000 in year 1, followed by inflows of $2,900,000 in year 2, $0 in year 3, $2,700,000 in year 4, and $2,300,000 in year 5? 5.83% 31.53% O None of the four possible given answer is correct O 11.44% 9.67%

What is the IRR for the following project if its initial after-tax cost is $5,000,000 and is expected to provide an after-tax operating cash outflow of -$1,800,000 in year 1, followed by inflows of $2,900,000 in year 2, $0 in year 3, $2,700,000 in year 4, and $2,300,000 in year 5? 5.83% 31.53% O None of the four possible given answer is correct O 11.44% 9.67%

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter12: Capital Budgeting: Decision Criteria

Section: Chapter Questions

Problem 10P: Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year...

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Project S has a cost of $10,000 and is expected to produce benefits (cash flows) of $3,000 per year for 5 years. Project L costs $25,000 and is expected to produce cash flows of $7,400 per year for 5 years. Calculate the two projects’ NPVs, IRRs, MIRRs, and PIs, assuming a cost of capital of 12%. Which project would be selected, assuming they are mutually exclusive, using each ranking method? Which should actually be selected?
What is the IRR for the following project if its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3 and $1,500,000 in year 4? 13.57% 14.77% 15.57% none of the above
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ed Your company has a project available with the following cash flows: Year Cash Flow 0 -$80,900 12345 21,600 25,200 31,000 26,100 20,000 If the required return is 15 percent, should the project be accepted based on the IRR?
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