Question 1
Project Delta has the following cash flows:
CF 0 –$1,200,000
CF 1 $400,000
CF 2 $600,000
CF 3 $300,000
CF 4 $70,000
Calculate the project’s IRR given a required rate of return of 23%.
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IRR = 6.83%
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IRR = 7.24%
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IRR = 8.56%
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IRR = 11.50%
Question 2
Project Delta has the following cash flows:
CF 0 –$11,000
CF 1 $0
CF 2 $700
CF 3 $1,000
CF 4 $4,000
CF 5 $7,000
If this project has a required rate of return of 16%, will management accept or reject the project?
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Management would reject the project since there are no positive cash flows in year 1.
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Management would reject the project because the project has an NPV of –$4,297.
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Management would reject the project because the project has an NPV of –$4,598.
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Management would accept the project because the project has an NPV of $4,297.
Mississippi River Delta
Mississippi Delta Sedimentation
A multiport fuel injector. Notice that the fuel flows straight through and does not come in contact ...
Delta method advice
Delta method question