i) Write down the equation that can be used to find the internal rate of return (IRR) of the project. In your equation, you must use the annuity formulas when possible. Can you advise if the rate of return is higher or lower than 12%? Provide your reason by calculating the net present value (NPV) of the project, you must use the annuity formulas when possible. Calculate the payback period in years for Project Panda. Round your answer to 2 decimal places.

i) Write down the equation that can be used to find the internal rate of return (IRR) of the project. In your equation, you must use the annuity formulas when possible. Can you advise if the rate of return is higher or lower than 12%? Provide your reason by calculating the net present value (NPV) of the project, you must use the annuity formulas when possible. Calculate the payback period in years for Project Panda. Round your answer to 2 decimal places.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter14: Real Options

Section: Chapter Questions

Problem 4MC

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