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Author Question: Calculate the internal rate of return on the following projects: a. Initial outlay of 60,500 with ... (Read 130 times)

jayhills49

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on: Jul 10, 2018
Calculate the internal rate of return on the following projects:
 
  a. Initial outlay of 60,500 with an after-tax cash flow of 11,897 per year for eight years.
  b. Initial outlay of 647,000 with an after-tax cash flow of 118,000 per year for ten years.
  c. Initial outlay of 25,400 with an after-tax cash flow 11,788 per year for three years.

Question 2

A project's equivalent annual annuity (EAA) is the annuity cash flow that yields the same present
  value as the project's NPV.
 
  Indicate whether the statement is true or false
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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Tabitha_2016

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Reply #1 on: Jul 10, 2018
Answer to Question 1

a. IRR = 11.33
b. IRR = 12.74
c. IRR = 18571

Answer to Question 2

TRUE


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jayhills49

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Reply #2 on: Jul 10, 2018
Correct answers!


Tabitha_2016

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Reply #3 on: Jul 10, 2018
Great! Please up vote :D


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