Let's say you have a project which will cost $25mm to build or buy. It will produce after-tax cash flows of $4mm for 9 years with each cash flow occurring at the end of the year. At the end of the 9 years, you will also receive a residual value payment of $3mm after tax. What is the IRR of the project? Round to the nearest one decimal place and use the % symbol. 5.4% would be the form of a correct answer.

Let's say you have a project which will cost $25mm to build or buy. It will produce after-tax cash flows of $4mm for 9 years with each cash flow occurring at the end of the year. At the end of the 9 years, you will also receive a residual value payment of $3mm after tax. What is the IRR of the project? Round to the nearest one decimal place and use the % symbol. 5.4% would be the form of a correct answer.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 16P

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Let's say you have a project which will cost $25mm to build or buy. It will produce after-tax cash flows of $4mm for 9 years with each cash flow occurring at the end of the year. At the end of the 9 years, you will also receive a residual value payment of $3mm after tax. What is the IRR of the project? Round to the nearest one decimal place and use the % symbol. 5.4% would be the form of a correct answer. Question 53 options:
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