P10-14 Internal rate of return. For each of the projects shown in the following table,...
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P10-14 Internal rate of return. For each of the projects shown in the following table, calculate the internal rate of return (IRR). Then indicate, for each project, the maximum cost of capital that the firm could have and still find the IRR acceptable. Project A Project B Project Project D Initial investment -$90,000 -$490,000 $20,000 -$240,000 Year Cash inflow 1 $20,000 $150,000 $7,500 $120,000 2 $25,000 $150,000 $7,500 $100,000 3 $30,000 $150.000 $7,500 $80,000 4 $35.000 $150,000 $7,500 $60,000 5 $40,000 $7,500 P10-14 Internal rate of return. For each of the projects shown in the following table, calculate the internal rate of return (IRR). Then indicate, for each project, the maximum cost of capital that the firm could have and still find the IRR acceptable. Project A Project B Project Project D Initial investment -$90,000 -$490,000 $20,000 -$240,000 Year Cash inflow 1 $20,000 $150,000 $7,500 $120,000 2 $25,000 $150,000 $7,500 $100,000 3 $30,000 $150.000 $7,500 $80,000 4 $35.000 $150,000 $7,500 $60,000 5 $40,000 $7,500
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