Question

P10-14 Internal rate of return For each of the projects shown in the following table, calcu- late the internal rate of return (IRR). Then indicate, for each project, the maximum cost of capital that the firm could have and still find the IRR acceptable. Project A $90,000 Project D $240,000 Initial investment (CF) Year (t) CA $20,000 25,000 30,000 35,000 40,000 Project B Project C $490,000 $20,000 Cash inflows (CF) $150,000 $7,500 150,000 7,500 150,000 7,500 150,000 7,500 7,500 $120,000 100,000 80,000 60,000 in

Answer 1

con find Cash floos Loe IRR of the Series for by IRR funchon click on the functton vsing wizard IRR function, Select the range f Select Cash floos the table and enter. belous Press progect Sheotng IRP of coch Prarect ProTect B prosect years A 2५०,०০0 2o, 000 ११०,००0 qo000 12 0,000 7 500 50.000 26,000 2 25000 100, 000 7500 30100o 150,000 7S00 Bo,ooo 35000 ןSO , טסס 7S00 60.c00 Yb.000 750o 25. 41 8.62-1 21. 16/ I RR 1.43'% Cost ofCapidal that 4he firm Coold So marimum / Ccep table and 4he have S4911 find TRR B:9. 261 C . A 18/- D 2a.