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You've estimated the following cash flows (in $) for a project:   A B 1 Year Cash flow 2 0 -5,300 3 1 1,300 4 2 2,100 5 3 3,700 The required return for the project is 8%. 1. What is the IRR for the project? 2. Should you accept the project? Yes or No?

You've estimated the following cash flows (in $) for a project:   A B 1 Year Cash flow 2 0 -5,300 3 1 1,300 4 2 2,100 5 3 3,700 The required return for the project is 8%. 1. What is the IRR for the project? 2. Should you accept the project? Yes or No?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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You've estimated the following cash flows (in $) for a project:

  A B
1 Year Cash flow
2 0 -5,300
3 1 1,300
4 2 2,100
5 3 3,700

The required return for the project is 8%.

1. What is the IRR for the project?

2. Should you accept the project? Yes or No? 

 
 
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