Charlie has a project for which he had determined a present worth $56,920. He now has to calculate the IRR for the project, but unfortunately, he has lost complete information about the cash flows. He knows only that the project has a five-year service life and the first cost of $200,000, that a set of equal cash flows occurred at the end of each year, and that the MARR used was 10 percent. What is the IRR for this project?

Charlie has a project for which he had determined a present worth $56,920. He now has to calculate the IRR for the project, but unfortunately, he has lost complete information about the cash flows. He knows only that the project has a five-year service life and the first cost of $200,000, that a set of equal cash flows occurred at the end of each year, and that the MARR used was 10 percent. What is the IRR for this project?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 4P

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