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Home / Questions / Internal rate of returnFor the project shown in the following table, (CF 0CF0) $80,000

Internal rate of returnFor the project shown in the following table, (CF 0CF0) $80,000

Internal rate of returnFor the project shown in the following table,

(CF 0CF0)

$80,000

(t)

(CF Subscript tCFt)

1

$15,000

2

$20,000

3

$10,000

4

$35,000

5

$25,000

calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable.

Initial investment

(CF 0CF0)

$80,000

 

 

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Year

(t)

Cash inflows

(CF Subscript tCFt)

1

$15,000

 

2

$20,000

 

3

$10,000

 

4

$35,000

 

5

$25,000

calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable.

 

       

 

 

Dec 04 2019 View more View Less

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