Question
Your company is considering the following three projects. &nbs
Your company is considering the following three projects.
CF0 CF1 CF2 CF3 CF4
Project Whiskey -100 80 20 80 20
Project Tango -100 20 80 20 80
Project Foxtrot -100 50 50 50 50
What is Project Tango’s IRR? And, should the project be accepted if we used IRR as the basis of decision? Assume that the cost of capital is 8%. Show your calculator inputs (CF0=?, CF1=?, CF2=?, CF3=?, CF4=?, etc.) to receive full credit.
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