Suppose we have a project with the following cash flows: Outgoing: P150,000 at t = 0, P250,000 at t = 1, and P250,000 at t = 2. Income: P1 million at t = 3. Find the IRR of the project. Round off to 1 decimal place. (ex. 10.1%)

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter10: The Basics Of Capital Budgeting: Evaluating Cash Flows
Section10.6: Profitability Index (pi)
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Suppose we have a project with the following cash flows:
Outgoing: P150,000 at t = 0, P250,000 at t =
1, and P250,000 at t = 2. Income: P1 million at t = 3.
Find the IRR of the project. Round off to 1 decimal place. (ex. 10.1%)
Transcribed Image Text:Suppose we have a project with the following cash flows: Outgoing: P150,000 at t = 0, P250,000 at t = 1, and P250,000 at t = 2. Income: P1 million at t = 3. Find the IRR of the project. Round off to 1 decimal place. (ex. 10.1%)
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