Project A costs $41,425 and has a WACC of 13%. Its expected net cash inflows areas follows:Year:13 4 5 6CF:9,000 8,000 9,000 12,000 10,000 18,000What is the project's IRR?4.87%7.54%10.45%13.37%

IRR is internal rate of return at net present value is zero that means present value of cash flow is…

Answered: Project A costs $41,425 and has a WACC…

Project A costs $41,425 and has a WACC of 13%. Its expected net cash as follows: Year: 0 1 2 3 4 CF: 9,000 8,000 9,000 12,000 10,000 18,000 What is the project's IRR? 4.87% 7.54% 10.45% 13.37%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 15EB: Project X costs $10,000 and will generate annual net cash inflows of $4,800 for five years. What is...

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Project A costs $41,425 and has a WACC of 13%. Its expected net cash inflows are
as follows:
Year:
1
3 4 5 6
CF:
9,000 8,000 9,000 12,000 10,000 18,000
What is the project's IRR?
4.87%
7.54%
10.45%
13.37%

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