1. The engineering design and testing group for Honda Corp. does contract-based
ID: 1098265 • Letter: 1
Question
1.
The engineering design and testing group for Honda Corp. does contract-based work for automobile manufacturers throughout the world. During the last 3 years, the net cash flows for contract payments have varied widely, as shown below, primarily due to a large manufacturer's inability to pay its contract fee
Year
0
1
2
3
Cash Flow ($1000)
$2000
-$500
-$8100
$6800
What is (are) the IRR of the cash flows above using Excel Spreadsheet?
1.
The engineering design and testing group for Honda Corp. does contract-based work for automobile manufacturers throughout the world. During the last 3 years, the net cash flows for contract payments have varied widely, as shown below, primarily due to a large manufacturer's inability to pay its contract fee
Year
0
1
2
3
Cash Flow ($1000)
$2000
-$500
-$8100
$6800
What is (are) the IRR of the cash flows above using Excel Spreadsheet?
Explanation / Answer
0 1 2 3 Cash flows $2,000 ($500) ($8,100) $6,800 IRR 7.47%
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.