Question

PRINTER VERSION BACK NEXT Problem 10.27 a-c Compute the IRR on the following cash flow streams: a. An initial investment of $27,929 followed by a single cash flow of $41,190 in year 6. (Round answer to 2 decimal places, e.g. 5.25%.) IRR b. An initial investment of $997,424 followed by a single cash flow of $1,685,200 in year 4. (Round answer to 2 decimal places, e.g. 5.25%.) IRR C. An initial investment of $1,706,710 followed by cash flows of $1,405,200 and $1,199,400 in years 2 and 4, respectively. (Round answer to 2 decimal places, e.g. 5.25% ) IRR Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor

Answer 1

A B D 44 45 46 47 48 49 C -1,706,710 Year 0 $ 1 $ 2 $ 3 $ 4 $ 5 $ 6 $ -27,929 - - - $ $ $ $ C Cashflows B -997,424 $ - $ - $ - - $ 1,685,200 $ - $ - $ 1,405,200 1,199,400 51 52 - 41,190 $ $ 53 54 IRR 6.69% =IRR(B46:B52) 14.01% IRR(C46:C52) 16.00% =IRR(D46:052) 55

*Please rate thumbs up