Project L requires an initial outlay at t = 0 of $59,700, its expected cash inflows...

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Project L requires an initial outlay at t = 0 of $59,700, its expected cash inflows...

Project L requires an initial outlay at t = 0 of $59,700, its expected cash inflows are $9,000 the project's IRR? Round your answer to two decimal places.

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Answer 1

Answer #1

Annual Cash till Infinity is $ 9,000

IRR is the rate at which Cash Inflow are equals to Cash outflows

So

NPV = 0

Present Value of Cash Inflow - Present Value of Cash Outflow = 0

Present Value of Cash Inflow = Present Value of Cash Outflow

9,000 / Rate of Return = 59,700

Rate of Return = 9000 / 59700

Rate of Return = 15.0754%

IRR is 15.0754%

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Answer 2

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Project L requires an initial outlay at t = 0 of $59,700, its expected cash inflows...

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12. Project L requires an initial outlay at t = 0 of $48,910, its expected cash...

Project L requires an initial outlay at t = 0 of $59,700, its expected cash inflows...

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Project L requires an initial outlay at t = 0 of $59,700, its expected cash inflows...