URGENT NEED NOW PLEASE The following are the cash flows of a project: ...
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URGENT NEED NOW PLEASE
The following are the cash flows of a project:
A firm is considering investing in the projects listed below. Each project has an initial investment outlay at time 0 and generates an annual cash inflow for 8 years starting in one years time. Using a discount rate of 10%, what is the maximum NPV, rounded to the nearest euro, that can be generated by investing in one or some of projects A to C, if the company has an investment budget of 20,000?
outlay at time 0 in
annual cashflow for 8 years in
Project A
-6,000
1,750
Project B
-10,000
3,000
Project C
-12,000
4,000
What is the internal rate of return for project A? Enter your answer as a percentage rounded to 2 decimal places.
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