What Is the IRR for the Following Project If Its

question 163

Multiple Choice

What is the IRR for the following project if its initial after tax cost is $5,000,000 and it is expected to provide after-tax operating cash inflows of $1,800,000 in year 1, $1,900,000 in year 2, $1,700,000 in year 3 and $1,300,000 in year 4?

• A) 15.57%
• B) 0.00%
• C) 13.57%
• D) None of the above

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Definitions:

Simultaneous

Occurring, operating, or done at the same time.

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