Compute the internal rates of return (IRRs) for the following capital budgeting

Question

Compute the internal rates of return (IRRs) for the following capital budgeting projects:

Year           Project G            Project P              Project V
0                $(23,000)            $(48,000)              $(36,000)
1                   7,900                      0                     (10,000)
2                   7,900                      0                              0
3                   7,900                      0                              0
4                   7,900                  81,000                 75,000

Explanation / Answer

IRR = IRR(CFs) IRR for G = IRR(-23000,7900,7900,7900,7900) = 14.04% IRR for P = IRR(-48000,0,0,0,81000) = 13.98% IRR for V = IRR(-36000,-10000,0,0,75000) = 13.75%

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.