Maxwell Feed & Seed is considering a project that has the
following cash flow data. What is the project's IRR? Note that a
project's projected IRR can be less than the WACC (and even
negative), in which case it will be rejected.
Year | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flows | -$6,750 | $2,000 | $2,025 | $2,050 | $2,075 | $2,100 |
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Year | 0 | 1 | 2 | 3 | 4 | 5 |
Cash flows | -$6,750 | 2,000 | 2,025 | 2,050 | 2,075 | 2,100 |
IRR = | 15.61% |
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