Question

Internal rate of return For the project shown in the following table, B: , calculate the internal rate of return (IRR). Then indicate, for the project, the maximum cost of capital that the firm could have and still find the IRR acceptable. The project's IRR is %. (Round to two decimal places.) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Initial investment (CF) Year (1) $120,000 Cash inflows (CF) $40,000 $25,000 $30,000 $30,000 $30,000 Print Done

Answer 1

A Year 0 Ham to do B Cash Flow (120,000) 40,000 25,000 30,000 30,000 30,000 ایم پی 5 IRR 9.55% 9 10

B A Year 1 20 3 1 42 Cash Flow - 120000 40000 25000 30000 30000 30000 =IRR(B2:B7) 9 IRR 10 11

Maximum cost of capital = Project's IRR = 9.55%