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mahan1994 mahan1994
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4 months ago
Consider a five-year project that costs $20,000 today, which is expected to generate $6,000 at the end of the second year and then the cash flows will increase by $1,000 per year for each of the remaining years. The cost of capital is 8%. What are the NPV and IRR for this project?

▸ NPV = $2,706.35; IRR = 11.93%

▸ NPV = $1,083.24; IRR = 8.96%

▸ NPV = $3,824.56; IRR = 14.87%

▸ NPV = $4,522.85: IRR = 17.09%
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
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itsbreckitsbreck
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4 months ago
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mahan1994 Author
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4 months ago
You make an excellent tutor!
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Yesterday
Good timing, thanks!
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2 hours ago
Thanks
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